A study on effectiveness of low cost airlines across the world

Abstract

This study is carried out to analyze the business model and strategy of the prominent low cost carriers in the world and in India. A detailed study is done in understanding the ideal model of a low cost carrier. Following this, the report goes on in examining the implementation of this model by some of the successful low cost airlines around the world. Their positioning, target customer, pricing strategies and operational efficiency have been studied in detail. Next to this is the detailed industry analysis of the low cost airlines employing Porter’s five forces model. This report goes on in studying the business strategies of some well known low cost carriers in India. Apparently, not all the low cost carriers are making profits in India except for Indigo airlines. Hence a comprehensive study is made on the business model of Indigo and the reason behind its massive success in India. Having the studied this, the major scope and challenges confronting this industry have been explored to forecast the future of the low cost carriers in India and around the world.