Airline Price in India - Its just a presentation we have to make report on this how airlines industry set their prices and strategies . If anyone needs it you can ask

1. Airline Price in India
Kusum
Khushbu
Safaat
Ashish

2. Contents
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Objective
History
Literature review
Data
Findings
conclusion

3. Objective
• To discuss airline pricing in India between the
top players of the industry and evaluate its
strategies.
• Analysis and evaluation of present scenario as
well as the future development.

4. History
• There have been major changes in aviation
industry in the past few years.
• Until 1986
• 1986-2003
• 2003-2006
• 2006 onwards
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5. Literature Review
• Indian aviation, spreading its wings : Evolution of
the industry, its classification, challenges and tax
and regulatory framework
• Fair is Fair in deregulation: Market Segmentation
& comparison between the customer who pay
higher or less for the same product and Types of
restrictions
• Airline Pricing - By thomas bertram: Three pricing
concepts - Dilution , Customer segmentation ,
Elasticity
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6. Continued...
• History of aviation industry in India: major
changes in the industry in the past few years
• Indian aviation industry has been going a
turbulent phase over the past years high oil
prices and limited pricing power
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7. Commercial aviation
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Related to GDP
Global business and tourism
Liberalisation
Expansion
Challenges
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8. General Aviation
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GA Market
Industry downtown
Opportunities
Challenges
Current project pipeline
Investment gap
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9. Data
Source: Company Filings,Bloomberg, ICRA Research
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10. State-wise representation of % of total flights vs.
% of the total population
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11. Findings :Key Pricing Concepts
• Dilution – Difference between how much
customers are willing to pay and what they
actually pay
• Customer Segmentation – People travelling
for business for vacation and visiting friends
and relatives
• Elasticity – Measure the sensitivity between
change in price and quantity of demand

12. Evaluate Competitive Pricing actions
• Know your Markets
• Know your Products
• Know your Competitors

13. Know your Markets
• High Market Share/ High yield – Maintain
market strength
• High Market Share / Low yield – Leverage
market presence to improve yield
• Low Market share / High yield – Segment fare
products to avoid dilution from higher fares
• Low Market share / Low yield – Opportunistic
pricing develops more demand
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14. Know your Products
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Schedule
Load factor
Loyalty
Airport/ in flight service
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15. Know your Competitors
• Price Behaviour
• Low Price Strategy
• New Services
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16. Pricing Strategies
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17. Price Discrimination vs. Product
differentiation
• Price Discrimination – The practice of charging
different prices for same product with same
cost of production
• Product Differentiation – Charging different
prices for products with different

18. Challenges
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19. Policy recommendations
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New business models in regional airports
Alternate development models
Incentive to airline operators
Review of route dispersal guidelines
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20. Types of Fare Restriction
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Advance Purchase requirements
Round Trip Travel
Minimum Stay requirements
Non stop travel / One stop Travel
Day of week / time of day

21. Conclusion
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Tremendous opportunities
Remodeling required
Huge investment needed
Changes in policies required
Future outlook
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22. Thank you....
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