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Analize How in India Low Cost Airlines Open the Doors of the Airlines Industry for Middle Class.

By Vikasacharya
Analize How in India Low cost Airlines open the doors of the airlines industry for middle class.

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The low cost airline industry has changed the definition of airlines that air travel is a luxury and it is only for the upper segment of the population. The key objective of low cost carriers is to increase their reach and provide the services to a large segment. The Aviation industry has changed during last five years. The market has been a very high level of competition in the field of Aviation many new players entered into this industry. So it becomes very difficult to Aviation companies to reduce the cost & earn good profit. In India, low cost carriers came into existence in 2003 when Air Deccan launched its first low cost airline and that was the first move to open the doors of the airlines industry for middle class. The Indian Aviation Industry has been going through a turbulent phase over the past several years facing multiple headwinds, high oil prices and limited pricing power contributed by industry wide over capacity and periods of subdued demand growth.

Analize How in India Low cost Airlines open the doors of the airlines industry for middle class.

Over the near term the challenges facing the airline operators are related to high debt burden and liquidity constraints most operators need significant equity infusion to effect a meaningful improvement in balance sheet. Improved financial profile would also allow these players to focus on steps to improve long term viability and brand building through differentiated customer service. Over the long term the operators need to focus on improving cost structure, through rationalization at all levels including mix of fleet and routes, aimed at cost efficiency. At the industry level, long term viability also requires return of pricing power through better alignment of capacity to the underlying demand growth. Due to growth in tourism, there has been an increase in the number of international and domestic passengers. Growth in the number of domestic passengers is estimated at 50 per cent Annual, while growth for international passengers is 25 per cent.

Analize How in India Low cost Airlines open the doors of the airlines industry for middle class.

National Aviation Company of India Limited (NACIL):-is a company incorporated under the Companies Act, 1956 and has the functions and responsibilities of providing safe, efficient, adequate, economical and properly coordinated international air transport services. It has been set up after the merger of Air India and Indian Airlines in 2007. This merger aims to create the largest airline in India. The name of the new airline is Air India and its logo is Maharaja. NACIL is carrying its operations under two operating permits, viz., NACIL-A and NACIL-I. It has following wholly owned subsidiaries, namely, Hotel Corporation of India Limited, Air India Charters Limited (AICL), Air India Engineering Services Ltd (AIESL); Air India Air Transport Services Limited (AIATSL); and Alliance Air. Airports Authority of India (AAI):-was constituted in 1995 for creating, upgrading, maintaining and managing civil aviation infrastructure, both on the ground and air space of the country. It aims at providing world class airport services for efficient operation of air transport in the country.

Analize How in India Low cost Airlines open the doors of the airlines industry for middle class.

The players in the Indian aviation industry can be categorized into two groups: public & private . Public players include Air India, Indian Airlines and Alliance Air. Private players include Jet Airways, Go Air, Air Costa, True Jet, Spice Jet, AirAsia India, Air Pegasus, and many more.

Conclusion: In the last few decades the infrastructure of the country has undergone severe change and development especially in the civil aviation sector of India. To manage the enormous growth in the airline industry of India modern airports have introduced in all over the country. Thus in the recent years several investments have been made in the air industry to make use of its large un-utilized air transport network. Low cost air terminal have also introduced in the Indian Market in last few years. This creates a boom in the Indian economy and thus causes huge benefits in the tourism industry in India.

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