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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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