:Price Leveraging
Group Member :
Ishan Sodi
Priyanka Babar
Prateek
Rajeshwari
R.Guruprasad
Rohit Bebarta
Rubina
Sahil
Introduction To Indian Aviation Sector
WAR
INTENSIFYING
THE
C E COMPETITION
PRI
A R
W
No Frills- Air Deccan
The credit for triggering this price offensive goes to
Air Deccan.
Inspired by the Irish carrier Ryan Air, Air Deccan
offered airfares as low as Rs 500 plus taxes on the
Mumbai-Delhi sector.
Air Deccan's normal fares are much lower than what
passengers are used to paying for air travel on Jet
Airways, Indian Airlines or Air Sahara.
It is a 'no frills airline', meaning that the airline has cut
out all the add-on costs of travel and focuses on getting
people from one location to another safely.
1993
Airways konnect
•Jet Lite was earlier Air Sahara which was taken over
Jet Lite and Jet Airways konnect are low cost carriers
conditions:
• advance
weeks.
companies.
very convenient
be rescheduled.
to travel by trains.
Dynamic Price
Maximise the number of seats sold, airlines divide the
at different prices.
daily demand.
BULK PURCHASE
One can save an additional 20% - 70% by buying
EFFECT:
exponentially,
EFFECT:
Entry into the air travel industry is not only cheaper, but also
3.Modernization of Airports
The Indian Cabinet has approved a
reduce fares.
5. Reduction on Excise
Duty
Effect :
It would lead to low fares thus giving a boost to air travel
The government has reduced the average age of aircraft being imported into India for
commercial airline operations by five years.
Effect: It would lead to increase in imports of aircraft thus can discourage more
operators coming in and improve services
6. Landing Charges abolished
Landing charges for aircraft with less than 80
11,2004.
Q1 Q3
concentration.
26.9095 DUR
0.9283
PRICING …
The adjusted R2 is 0.8746. This means that variation in
variation in prices
PRICING
decrease.
Conclusion
Some FAQ’s:
Were the schemes effective?? Does the price
cutting undermine firm's viability in the long
run??