Transformation of India's Domestic Airlines: A case study of Indian Airlines, Jet Airways, Air Sahara and Air Deccan

Abstract

India, home to one-sixth of the world's population, is becoming one of the world's economic engines. Its bureaucratic and outdated regulatory policies have been reformed resulting in a three-fold increase in the number of scheduled airlines and a five-fold increase in the number of aircraft operated. This paper reviews how the new regulatory roadmap has transformed the supply of domestic air services. A large passenger survey conducted in Mumbai investigated the sensitivity of passengers to a change in fare and which flight products would encourage them to select either a full service airline or a low cost carrier. The study finds that there is a homogenous set of flight products required by leisure passengers, travelling on both full service and low cost airlines, however there is a considerable dissimilarity overall between the requirements of passengers using a full service airline and a low cost carrier.

Investigating the impacts of budget airlines towards the mode choice decision of business travellers: A case study of Klang Valley, Malaysia

“…the expenditure of monthly income). About the same findings could be seen in [2], [3], [4] and [11].…”

“…This reveals that the business organizations tend to sponsor their employees to travel abroad as economical as possible. This demonstrates the concern of the business corporate, especially small-medium sized organizations, towards the minimum expenses policies ([2]- [4]). …”

A mobilities approach to tourism from emerging world regions

“…Improvements in surface infrastructure and the more recent expansion of small domestic and regional air companies, especially in such vast countries as Brazil (Silva and Parra, 2010;Théry, 2003), China (Shaw, Lu, Chen and Zhou, 2009;Takada, 2012), India (O'Connell andWilliams, 2006) and Indonesia (Hooper, 2005), facilitate brief excursions from the cities into remoter regions of those countries. Even in Thailand, which in global terms is a middle-sized country, well-off domestic tourists can take weekend excursions by air to less accessible destinations, such as the popular remote town of Pai in the country's north (E. Cohen, 2006).…”

An investigation into the core underlying problems of India's airlines

“…Average import-weighed tariffs exceeded 80%, while more than 90% of tradable goods were protected by quantitative restrictions on imports, and foreign investment was subject to strict limitations (Chadha et al, 2003). A study of India's aviation market by O'Connell and Williams (2006) discovered the same situation, finding that overall air transport enterprise had remained stagnant over many decades. Deep-rooted bureaucratic policies constrained any development and the state monopolised all aviation decisions.…”