Post on 20-Feb-2018
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PROJECTPROJECT
ONON
AVIATION INDUSTRYAVIATION INDUSTRY
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LOW COST AIRLINESLOW COST AIRLINES
SIMPLE PRDUCTSSIMPLE PRDUCTS
NOMEALS,DRINKS &SNAKS FOR FREENOMEALS,DRINKS &SNAKS FOR FREE NARORRW SEATINGNARORRW SEATING NO SEATINGNO SEATING
NO SEAT RESERVATIONNO SEAT RESERVATION NO FREQUENT FLYER PROGRAMMESNO FREQUENT FLYER PROGRAMMES
POSITIONINGPOSITIONING
NON BUSINESS PASSENGER,NON LEISURE TRAFFICNON BUSINESS PASSENGER,NON LEISURE TRAFFIC
SHORT HAUL POINT TO POINT TRAFFIC WITH HIGH FREQUENCIESSHORT HAUL POINT TO POINT TRAFFIC WITH HIGH FREQUENCIES AGGRESSIVE MAREKETINGAGGRESSIVE MAREKETING SECONDARY AIRPORTSSECONDARY AIRPORTS COMPETITIONS WITH ALL TRANSPORTATIONCARRIERSCOMPETITIONS WITH ALL TRANSPORTATIONCARRIERS
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LOW OPERATING COSTSLOW OPERATING COSTS
LOW WAGES,LOW AIRPORTFEESLOW WAGES,LOW AIRPORTFEES
LOW COSTS FOR MAINTENANCELOW COSTS FOR MAINTENANCE
LEAN SALES(HIGH PERCENTAGES OF ONLINE SALES)LEAN SALES(HIGH PERCENTAGES OF ONLINE SALES)
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ROLE OF THE LOW COSTROLE OF THE LOW COST
AIRLINES IN AVIATIONAIRLINES IN AVIATION
INDUSTRYINDUSTRY It ha !"#$%ht a ' 'a*% *It ha !"#$%ht a ' 'a*% *
a+*at*# *$t"-. '/'0t*+' 0#t, t*'a+*at*# *$t"-. '/'0t*+' 0#t, t*'
a+*% & %''"at*% '12#-'t.a+*% & %''"at*% '12#-'t.
It !'0#' +'"- a/#"a!2' t# 3- 4#" aIt !'0#' +'"- a/#"a!2' t# 3- 4#" a
*2' 02a 1'#12'.*2' 02a 1'#12'.
A*" D'00a a th' 5"t 2# 0#tA*" D'00a a th' 5"t 2# 0#t
a*"2*', *t 2a$0h' * 6778 & *t haa*"2*', *t 2a$0h' * 6778 & *t ha
a a9*$ ha"' * LCC a":'t.a a9*$ ha"' * LCC a":'t.
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A*" D'00a ';#- th' 5"t #+'"A*" D'00a ';#- th' 5"t #+'"
a+ata%' * t'" #4 a00' t# aa+ata%' * t'" #4 a00' t# a
2a"%' #. #4 #+'"*
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Th* a th' 5"t aa2-?*% 2# 0#t a*"2*'Th* a th' 5"t aa2-?*% 2# 0#t a*"2*'"'1#"t@="'1#"t@=
F#$" 2# 0#t a*"2*' t#%'th'" 0a""*'F#$" 2# 0#t a*"2*' t#%'th'" 0a""*'.7.7*22*# 1a'%'" $"*% th' -'a" 677.*22*# 1a'%'" $"*% th' -'a" 677. LCC> a00#$t 4#" a2#t 7 #4 th' 'LCC> a00#$t 4#" a2#t 7 #4 th' '
a*"0"a4t #"'" 12a0'.a*"0"a4t #"'" 12a0'.
D'a 4#" #'t*0 a*" t"a+'2 * '91'0t' t#D'a 4#" #'t*0 a*" t"a+'2 * '91'0t' t#*0"'a' at a CAGR #4 a!#+' 6 4#" th' '9t*0"'a' at a CAGR #4 a!#+' 6 4#" th' '9t5+' -'a".5+' -'a".
A*" D'00a & S1*0';'t "'1"''t' 7 #4 th'A*" D'00a & S1*0';'t "'1"''t' 7 #4 th'*0"'a' * 'at 0a1a0*t- !'t'' 677 &677.*0"'a' * 'at 0a1a0*t- !'t'' 677 &677.
LCC> a"' t-*% $1 *th 4at 4## 0ha* &LCC> a"' t-*% $1 *th 4at 4## 0ha* &t"a+'2 1#"ta2 a a 1a"t #4 th'*" a":'t*%t"a+'2 1#"ta2 a a 1a"t #4 th'*" a":'t*%t"at'%-.t"at'%-.
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S1*0' 'tS1*0' 't
S1*0' ;'t * a 2# 0#tS1*0' ;'t * a 2# 0#t
a*"2*' !a' * N'a*"2*' !a' * N'
D'2h*. It !'%aD'2h*. It !'%a
'"+*0' * Ma- 677.'"+*0' * Ma- 677.
S1*0' ;'t a":'t *t>S1*0' ;'t a":'t *t>
't"- * '"+*0' *th't"- * '"+*0' *th
". 4a"' 4#" th'". 4a"' 4#" th'
5"t a-. Th'"'5"t a-. Th'"'
'"' 777 'at'"' 777 'at
a+a*2a!2' at th* "at'.a+a*2a!2' at th* "at'.
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INDIGOINDIGO
It 0#'0'It 0#'0'
#1'"at*# # a$%.#1'"at*# # a$%.
677 *th a '"+*0'677 *th a '"+*0'
4"# D'2h* t# I1ha24"# D'2h* t# I1ha2
+*a G$ahat*. It *+*a G$ahat*. It *#' !- It'" %2#!a2#' !- It'" %2#!a2
't'"1"*'. It t##:'t'"1"*'. It t##:
'2*+'"- #4 *t> 5"t'2*+'"- #4 *t> 5"t
a*"!$ A867 a*"0"a4t #a*"!$ A867 a*"0"a4t #6< $2- 677 &6< $2- 677 &
"'0'*+' a*"0"a4t"'0'*+' a*"0"a4t
$"*% 677.$"*% 677.
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MDLRMDLR
MDLR a*"2*' * #'MDLR a*"2*' * #'
!- M$"2* Dha" La:h!- M$"2* Dha" La:h
Ra %"#$1. It ta"tRa %"#$1. It ta"t
#1'"at*% * 677. *t>#1'"at*% * 677. *t>
!a' * G$"%a#. It!a' * G$"%a#. Ita "'1#"t' thata "'1#"t' that
MDLR a*"2*' *22MDLR a*"2*' *22
0at'" t# "'2*%*#$0at'" t# "'2*%*#$
t#$"*. It a2# 12at#$"*. It a2# 12at# '9t' *t> '"+*0't# '9t' *t> '"+*0'
t# 12a0' #4t# 12a0' #4
1*2%"*a%'.1*2%"*a%'.
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G# A*"G# A*"
It> 1"##t' !- th'It> 1"##t' !- th'W'*a %"#$1. G# a*"W'*a %"#$1. G# a*"a 'ta!2*h' *a 'ta!2*h' *
$' 677. G# a*"$' 677. G# a*"
ta"t' *t>ta"t' *t>#1'"at*# 4"##1'"at*# 4"#N#+.677. *tN#+.677. *t#1'"at' a*"!$#1'"at' a*"!$
A867 a*"0"a4t & #A867 a*"0"a4t & #*t #1'"at' 3*%ht t#*t #1'"at' 3*%ht t#8 0*t*' *th 8 0*t*' *th a*2- 3*%ht.a*2- 3*%ht.
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R#2' #4 th' *0"'a' $!'"R#2' #4 th' *0"'a' $!'"
#4 #'t*0 a*"2*' * a+*at*##4 #'t*0 a*"2*' * a+*at*#
Th' a*"2*' a"' *t"#$0*% a-Th' a*"2*' a"' *t"#$0*% a-
#"' a*"0"a4t * th'*" 3''t 0a""- th'#"' a*"0"a4t * th'*" 3''t 0a""- th'
a' $!'" #4 1a'%'", th'"' *a' $!'" #4 1a'%'", th'"' **%*50at2- #"' a*" t"a0, a22 th'*%*50at2- #"' a*" t"a0, a22 th'
a*"2*' a"' 12a*% th'*" 3*%ht *a*"2*' a"' 12a*% th'*" 3*%ht *
th' !'t t*' 1'"*# t# 0#12't'th' !'t t*' 1'"*# t# 0#12't'
*th th' #th'" a*"2*' h# a"' #*%*th th' #th'" a*"2*' h# a"' #*%
th' a' th*%.th' a' th*%.
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C-02' #4 th' *0"'a*% #.C-02' #4 th' *0"'a*% #.
#4 #'t*0 a+*at*##4 #'t*0 a+*at*# JJI*a * aI*a * a
''"%*%''"%*%
a'"#1a0' a":'ta'"#1a0' a":'t
*th '="'%$2at*#,*th '="'%$2at*#,"**% #'t*0 a*""**% #'t*0 a*"
t"a+'2 & *0"'a' *t"a+'2 & *0"'a' *
th' #. #4 4#"'*%th' #. #4 4#"'*%
a*"2*' 3-*% t#a*"2*' 3-*% t#I*a.I*a.
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Th* "'1#"t * a' !- th' S1*0'Th* "'1#"t * a' !- th' S1*0'
;'t@=;'t@=
S1*0' ;'t "'0't2- *$0t' t# #"'S1*0' ;'t "'0't2- *$0t' t# #"'
B#*% 8 3''t &B#*% 8 3''t &
*0"'a' *t> 0a1a0*t- 4"# 77*0"'a' *t> 0a1a0*t- 4"# 77
'at t# #+'" 77 'at a a-.'at t# #+'" 77 'at a a-.
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R#2' #4 th' a+*at*# * I*a>R#2' #4 th' a+*at*# * I*a>
*1"#+*% '0##-*1"#+*% '0##- C#$'" ha+' 0a1a0*t- t# a/#"C#$'" ha+' 0a1a0*t- t# a/#"
a*" t"a+'2 0#1't*t*#. A#%t th'a*" t"a+'2 0#1't*t*#. A#%t th'
A*"2*' ha "'$2t' * a ha"1A*"2*' ha "'$2t' * a ha"1
'02*' * th' A*" 4a"'.'02*' * th' A*" 4a"'.
H*%h'" *0#' $' t# *0"'a*%H*%h'" *0#' $' t# *0"'a*%
'0##- ha a' *t 1#*!2' 4#"'0##- ha a' *t 1#*!2' 4#"
#"' A*" t"a+'2'".#"' A*" t"a+'2'".
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M#"' t"a+'2'" ha+' '0#$"a%' 'M#"' t"a+'2'" ha+' '0#$"a%' '
#1'"at#" & * t$" h*%h'" th'#1'"at#" & * t$" h*%h'" th'
0#1't*t*# 4#"0' t# #/'" 1'0*a20#1't*t*# 4#"0' t# #/'" 1'0*a2
*0#$t' 4a"' & '+'t$a22- 4a0'*0#$t' 4a"' & '+'t$a22- 4a0'0ah 2#' & 0"*'. Y't, th' *$t"-0ah 2#' & 0"*'. Y't, th' *$t"-
* %"#*% "a1*2- & *22 #+'" 0#'* %"#*% "a1*2- & *22 #+'" 0#'
th' 0"*'.th' 0"*'.
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