Microeconomics - Group - 5 Section - F
Microeconomics - Group - 5 Section - F
Microeconomics - Group - 5 Section - F
AIRLINES:
MONOPOLIZING
INDIAN SKIES
GUIDED BY – Dr. Binilkumar Amarayil Sreeraman
SUBMITTED BY : Group 5
SRIJAN GAUTAM 2202225
SRINABH 2202226
SUBHAM PATRA 2202227
SUMANTA BANERJEE 2202228
SUMIT KUMAR 2202229
SURAJ KUMAR 2202230
SWAGAT SHOVAN 2202231
Group 5 TALELE ADVAIT NITIN 2202232
TANISH GANESH MESHRAM 2202233
TANMAY BORA 2202234
SUMANT JHA 2203016
SUSHIL CHANDRA MARDI 2203017
MANU PILLAI 2203018
• The Indian Civil Aviation Industry was opened in
1991, post which private players were allowed to
enter the market.
20
15
10
5
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Years
CIVIL AVIATION MARKET, AIR CONNECTIVITY, AND
PER CAPITA INCOME OF SELECTED COUNTRIES
• Dynamic Pricing (DP) allowed prices for the same service to change according to customer,
time, aggregate demand, and other situation-specific parameters.
• Customer loyalty was minimal due to product homogeneity in aviation sector, so price
discrimination through DP was to shift loyalty of customers in order to attain a higher
occupancy rate.
• IndiGo leveraged the benefits of DP to take advantage of highly price-conscious customers in
the Indian aviation market, where demand was still inelastic given the low penetration rates.
• The efficacy of IndiGo’s DP contributed to its rising market share and average operating
revenue per passenger kilometer (an increase of 68% in its operating revenue per 1,000
passenger kilometers since 2007–08).
INNOVATIVE AIRCRAFT MANAGEMENT STRATEGY