Operating models: Indian aviation

Abstract

Indian aviation sector like any aviation industry across the globe is facing a problem of nega-tive profitability, high cost of operation, price wars and low passenger occupancy. Entry of low cost carriers only intensified these problems and competition. Air-Asia which is a suc-cessful low cost carries is about to make an entry in Indian space. There are some challenges faced by aviation sector like high prices of ATF, high airport ground facility charges which are putting pressure on bottom line of Airlines. Indian aviation as a whole need to get out of this loss making business and make processes and provision to make Industry profitable and ef-ficient with long term sustainability of business models. Making this possible, all carries along with government need to change the way Indian aviation sector operated right from strategy level to operation level. This paper aims at suggesting different operating models which can make Indian space sec-tor more profitable with long term sustainability, catering to the growing demand over next decade, making operations across all airline carries efficient and increasing passenger occu-pancy. The operating models suggested aims at providing collaborating atmosphere for all airlines with strong support from Government by providing transparent strategies to exe-cute the models.