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Air Asia

Autor:   •  June 16, 2012  •  Case Study  •  667 Words (3 Pages)  •  1,045 Views

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62 In Indian aviation sector the dominance of Legacy carrier i.e. Air India was broken by Jet airways which took a major market share from this Flag bearer of Indian Government in very short span of time. However Kingfisher tough joined late was the most liked carrier as it was giving facilities par excellence. However the sustenance in the Indian market is a very big issue. In all cases the money matters. An individual in India where the junk of middle class is very high thinks that it is the basic requirement to reach early from place A to place B even if you get basic facilities in aircraft or not.

Critical analysis

63 Some elements of the low-cost model have been subject to criticism by governments and regulators, and in the UK in particular the issue of "Unbundling" of ancillary charges by both low-cost carriers and other airlines (showing airport fees, taxes as separate charges rather than as part of the advertised fare) to make the "headline fare" appear lower has resulted in enforcement action. Believing that this amounts to a misleading approach to pricing, the Office of Fair Trading (OFT) in February 2007 gave all carriers and travel companies three months to include all fixed non-optional costs in their basic advertised prices. Although the full service carriers had complied within the specified timescales, the low-cost carriers have been less successful in this respect, leading to the prospect of legal action by the OFT.

64 Many low-cost carriers show a zero cost for some flights. Most charge additional fees for airport check-in, baggage check-in, 'handling charges', seat allocation and credit card processing. These charges are non-refundable even in the case of cancellation by the airline. Ryanair requires that passengers' airport purchases fit within their carry-on bag..

65 The Air Deccan which was so called LCC launched in India was a huge success but it could not sustain itself and finally was merged with Kingfisher. Basic reason was that you cant sell an air ticket for

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