The document presents a comparative analysis of low-cost airlines in India. It discusses the various low-cost carriers operating in India including SpiceJet, IndiGo, Air Deccan, JetLite, and GoAir. For each airline, it provides details on their founding, network, and marketing strategies. It also analyzes the 7Ps of marketing mix for some of the major low-cost carriers. Additionally, it discusses factors affecting customer preferences when choosing an airline and the impact of low-cost carriers on other forms of transportation in India. Data analysis on customer surveys looks at preferences for airlines, importance of price, brand loyalty, and awareness of airline offers. Overall, the document analyzes the low-
3. The overall objective is to study the aviation industry, where
low cost airlines are capturing more and more Indian air
space, as compared to the premium airlines
To compare and analyze in between the low cost airlines in
India
To find out the market share captured by low cost airlines as
proportionate to premium airlines
4. Low-cost airlines offer air travel at normally very low rates by cutting down on
expensive customary in-flight passenger services. They are also referred to as
no-frills airlines or budget carriers.
The idea of LCC originated in the US. Founded in Dallas Texas on June
18, 1971 by Herb Kelleher, Southwest Airlines offered tickets that worked out to
be cheaper than a car or coach ride. It is the fourth largest US airline in terms of
domestic customers carried annually. It has been profitable every year since
1973.
Budget airlines have been enthusiastically accepted by the Indian passengers.
The business model of an LCC broadly includes the following features: a single
passenger class; a single type of aircraft for lesser maintenance and servicing
costs; flying to cheaper; short flights and fast turnaround times; optional paid-for
in-flight food and drink.
5. SpiceJet:-
• SpiceJet was earlier known as Royal Airways. Promoted by Ajay Singh, the
Kansangra family, and Sanjay Malhotra, it started operations in 2005 and is
based in New Delhi.
• SpiceJet made an entry into the Indian LCC market with a fare price of Rs 99 for
the first 99 days and followed it up with Rs 999 scheme for select routes. Its
target customer is the Indian Railways passenger travelling in the AC coach.
• It has an aggressive marketing strategy with a theme that runs: "offering low
'everyday spicy fares' and great guest services to price conscious travellers."
6. IndiGo:-
• Owned by InterGlobe Enterprises, Indigo took off in 2006 with its first flight
from Delhi to Imphal via Guwahati. Headed by Rahul Bhatia, it covers all major
leisure and business destinations like
Chennai, Kolkata, Bangalore, Mumbai, Delhi, etc.
• Known for its seamless, precise, gimmick-free customer experience at affordable
prices, Indigo links 14 destinations across India. It constantly stresses on
affordability, punctuality and hassle-free processing.
7. AIR DECCAN:-
• Captain Gopinath, the founder of Air Deccan, is the pioneer of budget airlines
in India. He started with the dream of bringing air travel within the reach of the
common man and in 2003, Deccan became the first low-cost airline to fly pan-
India. It is also the first airline to fly to second tier cities like Hubli, Madurai
and Visakhapatnam from major cities like Bangalore and Chennai.
• With its recent merger with Vijay Mallya's Kingfisher Airlines, Air Deccan was
renamed Deccan, with SimpliFly as its tagline.
8. Jetlite:-
• Born as Sahara Airlines in 1991, it started operations in 1993 and was
rechristened Air Sahara in 2000. Part of Sahara India Pariwar, Air Sahara
became an international carrier in 2005.
• After much deliberation and more legal fuss, Jet Airways, headed by Naresh
Goyal, bought Air Sahara in 2007 for Rs 1,450 crore (Rs 14.5 billion).
• Jet Airways dubbed its low-cost counterpart JetLite. Jet carried forward Sahara's
trademark of 'Indian-ness' in the look and feel of the airlines. The crew's dress
code and the fleet colours were retained to continue Sahara's Indian legacy.
9. GoAir:-
• Promoted by the Wadia group, GoAir is a no-frills airline based out of Mumbai. It is
positioned as a 'Smart People's Airline', with its theme of 'Fly Smart.„
• With Jehangir Wadia at the helm, GoAir's business model stresses on
punctuality, affordability and convenience.
• GoAir's route network spans prominent business and leisure destinations, across India.
Currently it covers 13 destinations:
Ahmedabad, Bangalore, Chennai, Cochin, Coimbatore, Delhi, Goa, Hyderabad, Jaipur, J
ammu, Mumbai, Pune, and Srinagar.
• GoAir has a tie-up with Cleartrip to offer return fares of Rs 599 across all sectors in
India.
11. 7’P OF SPICEJET:-
Product:
On Ground Services:
Check in Option
Airport Lounges
Coach & Bus services
In Flight Services:
SpiceJet sells hot meals/snacks/refreshments and beverages
Price:
Discounted fare for senior citizen , defense personnel
Economy & club premiere fare
Advance passenger excursion
Place:
Place of Services: aircraft ( ticket counters, check-in boarding place, broker‟s office, etc )
Various Destinations
12. 7’P OF SPICEJET (contd.):-
Promotion:
Hoardings & advertisement
Sponsorships
Event organization
Process:
People Processing:
Greeting method and standard procedure of treatment for customers for each class
Booking tickets on counters
Possession Processing:
Cargo
Luggage
13. 7’P OF SPICEJET (contd.):-
People:
Crew members
Ground Staff
Customers
Employees
Physical Evidence:
On the ground:
Booking office or Ticket counters
Paper work
Brand Logo
Ticket
In Flight:
Aircraft and seating configuration
Uniform
Level or Tag
14. 7’P OF INDIGO:-
Product:
On Ground Services:
Check in Option
Airport Lounges
Coach & Bus services
In Flight Services:
Indian based IndiGo offers a selection of food and beverages for sale onboard
For passengers with special needs, IndiGo offers a choice of sugar-free health bars and
drinks.
Complimentary drinking water is offered on all IndiGo flights.
Price:
Discounted fare for senior citizen , defense personnel
Economy & club premiere fare
Advance passenger excursion
Place:
Place of Services: aircraft ( ticket counters, check-in boarding place, broker‟s
office, etc)
Various Destinations
15. 7’P OF INDIGO(contd.):-
Promotion:
Hoardings & advertisement
Sponsorships
Event organization
Process:
People Processing:
Greeting method and standard procedure of treatment for customers for each class
Booking tickets on counters
Possession Processing:
Cargo
Luggage
16. 7’P OF INDIGO(contd.):-
People:
Crew members
Ground Staff
Customers
Employees
Physical Evidence:
On the ground:
Booking office or Ticket counters
Paper work
Brand Logo
Ticket
In Flight:
Aircraft and seating configuration
Uniform
Level or Tag
17. 7’P OF AIR DECCAN:-
Product:
On Ground Services:
Check in Option
Airport Lounges
Coach & Bus services
Price:
Discounted fare for senior citizen , defense personnel
Economy class fare
Advance passenger excursion
Place:
Place of Services: aircraft ( ticket counters, check-in boarding place, broker‟s
office, etc )
Various Destinations
18. 7’P OF AIR DECCAN(contd.):-
Promotion:
Hoardings & advertisements
Brand ambassadors
Sponsorships
Event organization
Process:
People processing:
Greeting method and standard procedure of treatment for customers
Booking tickets on counters
Flights sticking to schedule
Possession Processing:
Cargo
Luggage
19. 7’P OF AIR DECCAN(contd.):-
People:
Crew members
Ground Staff
Customers
Employees
Physical Evidence:
On the ground:
Booking office or Ticket counters
Paper work
Brand Logo
Ticket
In Flight:
Aircraft and seating configuration
Uniform
Level or Tag
20. 7’P OF JETLITE:-
Product:
On Ground Services:
Check in Option
Airport Lounges
Coach & Bus services
In Flight Services:
Classes of service: First class, Premium class and Economy class
Cuisines
Entertainment: Jet Screen – Movies, Television
Programme, Games, Music, In Flight Communicator, Online magazine
Jet Wings (in flight magazine) , Jet Boutique ( in flight shopping
catalogue)
Jet mobile
Jet Kids
Jet Escapes
21. 7’P OF JETLITE( contd.):-
Price:
Discounted fare for senior citizen , defense personnel
Economy & club premiere fare
Advance passenger excursion
Place:
Place of Services: aircraft ( ticket counters, check-in boarding place, broker‟s office, etc )
Various Destinations
Promotion:
Sales Promotion:
Different type of offers-
Jet privilege frequent-flyer program
Jet airways Citibank Credit cards
Corporate deal offer
Festival special , student special
22. 7’P OF JETLITE( contd.):-
Advertisement & branding:
Hoardings & advertisement
Sponsorships
Event organization
Process:
People Processing:
Greeting method and standard procedure of treatment for customers for each
class
Booking tickets on counters
Possession Processing:
Cargo
Luggage
23. 7’P OF JETLITE( contd.):-
People:
Crew members
Ground Staff
Customers
Employees
Physical Evidence:
On the ground:
Booking office or Ticket counters
Paper work
Brand Logo
Ticket
In Flight:
Aircraft and seating configuration
Uniform
Level or Tag
24. 7’P OF GOAIR:-
Product:
On Ground Services:
Check in Option
Airport Lounges
Coach & Bus services
In Flight Services:
GoAir‟s exclusive in-flight magazine “go-getter”
Price:
Discounted fare for senior citizen , defense personnel
Economy class fare
Advance passenger excursion
Place:
Place of Services: aircraft ( ticket counters, check-in boarding place, broker‟s office, etc )
Various Destinations
25. 7’P OF GOAIR(contd.):-
Promotion:
Hoardings & advertisement
Sponsorships
Event organization
Process:
People Processing:
Greeting method and standard procedure of treatment for customers for
each class
Booking tickets on counters
Possession Processing:
Cargo
Luggage
26. 7’P OF GOAIR(contd.):-
People:
Crew members
Ground Staff
Customers
Employees
Physical Evidence:
On the ground:
Booking office or Ticket counters
Paper work
Brand Logo
Ticket
In Flight:
Aircraft and seating configuration
Uniform
Level or Tag
29. SERVICE GAP MODEL OF AVIATION INDUSTRY(contd.):-
GAP 1:
Consumer expectation and management perception.
GAP 2:
Management perception and service quality specification.
GAP 3:
Service-quality specifications and service delivery.
GAP 4:
Service delivery and external communications.
GAP 5:
Perceived service and expected service.
30. DATA ANALYSIS & INTERPRETATION
1.Mostly Preferable Low cost Airlines in India
INTERPRETATION:
On the basis of bar diagram, the passengers mostly preferred INDIGO as their first preference in low cost airlines
segment in India than followed by other airlines. According to survey collected, Indigo has 40% as first
preference, Jetlite has 25% as second preference, GoAir has 17% as third preference, SpiceJet has 12% as fourth
preference & last but not least Air Deccan has 6% as fifth preference.
Though Indigo give stiff competition to other low cost airlines in such a segment.
Indigo JetLite SpiceJet GoAir Air Deccan
40%
25%
12%
17%
6%
Mostly Preferable Low cost Airlines in India
31. DATA ANALYSIS & INTERPRETATION
2.Preference given to when selecting an airline:
INTERPRETATION:
On the basis of above Pie-Chart, passengers gives more importance to the “COST” as major determinant in
selecting an airlines for travelling purpose either it may be low cost airlines or full time airlines. So passengers, try
to minimize the cost they are paying for airlines. Therefore Cost has 51% of sharing rather the factor which is
Punctuality with 38%, Availability of Seat with 6% & Service with 5%
51%
38%
6%
5%
Preference given to when selecting an airline
Cost
Punctuality
Availability of Seat
Service
32. DATA ANALYSIS & INTERPRETATION
3.Type of carrier people prefered in India
INTERPRETATION:
On the basis of above Doughnut, the Low Cost Airlines is mostly preferred by Passengers in India over the Full
Time Airlines. Since, now a day, Low cost carriers were capturing more and more air space in Indian skies.
Therefore low-cost carrier airlines as preferred by the population is 63% and 37% are the population which
preferred Full time Airlines.
Low Cost
Airlines
63%
Full Time
Airlines
37%
Type of carrier people prefered in India
33. DATA ANALYSIS & INTERPRETATION
4.Percentage of people stick to one brand
INTERPRETATION:
On the basis of above pie-chart, since the peoples preferred to travel with those low cost airlines which provide
them with cost effectiveness. As, data which is collected from the survey that 61% of the population are the Brand
switcher to Airlines which provided them such as discount on air tickets, Combo Offer,etc.
27% of the population are those who preferred to the same Airlines, where they perceived to get the same type of
service when they visited the same airlines. They are called Brand Loyal.
Brand Loyal
27%
Brand Switcher
61%
Can't Say
12%
% of people stick to one brand
34. DATA ANALYSIS & INTERPRETATION
5.Mostly affected by the introduction of budget airlines
INTERPRETATION:
On the basis of above bar diagram, with the introduction of Budget airlines or low cost carrier in India, the
business which is mostly affected is the Rail Traffic which is 56% . The reason behind it the passengers which is
travelling from one destination to another designation (say Kolkata to Delhi) take long time to reach the
designation with the fare which is charged by railways for their 1st tier from passengers. Similarly, low cost
airlines were charging more or less type of charge for their fare with 2 to 3 hours of travelling from one
designation to another. Since, the passengers are more comfortable to choose budget airlines over railways.
As 39% are full services carrier of which their business are affected with the introduction of low cost airlines and
5% are the road traffic which is transport services such as Volvo buses or luxury buses.
Road traffic Rail traffic Full service
carrier
Other Service
5%
56%
39%
0%
Mostly affected by the introduction of budget airlines
35. DATA ANALYSIS & INTERPRETATION
6.Price sensitivity with reference to reliability
INTERPRETATION:
On the basis of above pie-chart, people are price sensitivity with reference to reliability. Though
85% are price sensitivity and 15% are not price sensitivity. While a large part of population rather
see that the price that they are paying should utilized services to the full extent which is provided by
the budgeted airlines.
Yes
85%
No
15%
Price sensitivity with reference to reliability
36. DATA ANALYSIS & INTERPRETATION
7. Awareness about existing offer by low cost airlines
INTERPRETATION:
On the basis of above Doughnut, the people are not aware of offers and discounts which is provided by the
airlines. Since those are the regular or frequent fliers would know the offers, discounts which is provided by the
airlines. A large number of population is not aware of aware of the discount or any promotional offers which
covered 81% and 19% are the population are aware of offers which is given by airlines.
Yes
19%
No
81%
Awareness about existing offer by low cost airlines
37. FINDINGS
From the project and survey few of my findings about Low Cost Carriers
(LCCs) are as follows.
People preferred to travel with those LCCs, which provide good service with least
minimum cost in LCCs segment.
As per survey and data collected, Indigo airlines are mostly preferred by most of the
passengers.
With the emergence of LCCs, rail traffic is affected mostly followed by the full service
carrier.
Many fliers are less aware about the existing offers which are offer by LCCs, in order to
attract more business for airlines.
38. LIMITATION OF THE STUDY
Some study has already been done on this topics .This study is taking a step further to
explore the low cost carriers industry in India and its impact on the other mode of
transports such as rail traffic, road traffic, etc and the welfare of the people of the
country .
However, since not all aspects could be covered. There is still a need for further research
in this area. Further, this research might have some drawbacks. Moreover only 5 low
cost carriers had been chosen in order to carry out the study. The sample may not be a
good representative of the population as a whole. Due to time constraints, only 60
people could be questioned.
39. RECOMMEDATIONS
With the reference to my study on Low Cost Airline in India, I would to suggest on
some issues that may be benefited to the companies who are into aviation sectors.
The major cost of all airlines, whether full time or low cost, is that incurred on fuel. All carriers
should try to adopt the measure as adopted by Southwest airlines, which is of hedging fuel prices, so
that they can minimize the damages caused due to price fluctuations in severe situation that affect
their business and profits.
A serious problem which is faced by the low cost carriers is that lack of Punctuality. The low cost
airlines should try to resolving it by maintaining a better relation with the civil aviation authorities
and airport authorities in order to prevent unnecessary delays in their flights.
The low cost airlines should also provide better training to their staff, so that they provide good
service without discriminating against the passengers on the basis of kind of background they
belong to.
Strengthen and Promote short haul tourism for business development, trade and tourism.
40. CONCLUSION
The emergence of low cost airlines is having a strong impact on the aviation market in India .The
airline market is being split into two. On the one hand will be the middle class (as well as some
price conscious upper class customers), who are holiday and leisure travelers; along with conscious
business travelers who prefer to travel by low cost airlines. On the other hand would be the upper
class travelers who want to maintain certain standards of living in the society, along with the time
punctual business travelers who would rather pay a higher price to get quality service and reach
their destination on time.
Overall study which focuses is that there is a huge potential for the low cost airlines to grow in
India since there was a huge demand sector that was unfilled by the schedule (full time) carriers, to
whom it never even occurred that there was a growing middle class which would be willing to fly
for a cheaper price.
To sum up, there is a rapid expansion of low cost carrier business in India having profound effect
on the efficiency, competition, consumers as well as the structure of the industry. A growing
proportion of India is now benefiting from the availability of cheap flights. Flying is no more
constraints for middle class people. The rapid growing middle class of India, who could not even
imagine that they would ever fly, are now flying.