1. Airlines
An Oligopoly

2. What is Oligopoly !
Few number of firms contributing to the entire market share.
Products are differentiated in terms of service quality and offerings
Entry barriers
Firm is a price-setter
Strategy dependent on individual rival firm’s behavior  

3. Current Players ! Full Cost Airlines Low Cost Airlines Kingfisher Jet
Indian Airlines
Low Cost Airlines
Air Deccan.
Go-Air.
Spice.
Indigo.

4. Flight no: LCC Destination: India
India's aviation sector has become the fastest-growing in Asia
Rise in domestic air capacity whooping 46% .
Not a new concept abroad
Remarkable jump of 466%
-data as per 2005

5. The Growth Story !

6. Is it really sustainable in Long run?

7. YES !Its a cost cutting model to Survive .

8. “no-frills airlines” Several options to costs. Online Tickets.
No FREE meals.

9. “no-frills airlines” No News papers.
Lean and Mean approach to staffing.
Optimum utilization of space.

10. “no-frills airlines” Point to point contact.
Higher aircraft Utilization.
Lease air crafts to minimize debt to investment ratio.

11. “no-frills airlines” Use secondary airports.
Standardization of aircrafts.
NO business class.

12. Challenges !
Fuel
Capital
Others

13. Pricing Strategies Revenue Management . Increased profits
Implements peak-load pricing
Implements third-degree price discrimination
Implements an inventory control system

14. Current Affairs !

15. Kingfisher acquiring Air Deccan

17. The CZARS unite ! Jet – Kingfisher . Almost a Cartel

18. Hurting Fuel costs.

19. Flourishing Railways… A cross-price competitor!

20. So why are we still in business
So why are we still in business ? Do we continue Boarding or Do we de-plane ?

21. Hope u had a nice flight !