Study of the Airline ticket pricing mechanism India: Contrasts with developed markets

Abstract

Airline Industry is continuously making losses. It is not only one single player but almost all of them. The most surprising fact is that the industry is deregulated. The system gives a free hand to the carriers to determine their prices. Even after this, the airlines are running into losses. Therefore, in our CCS project we aim to study the pricing model followed by the airline industry, variables affecting the ticket prices and the rationale behind following this kind of pricing model despite making such huge losses. The project also focuses on analysing pricing patterns of airline tickets in various international markets and compares with practices followed in India.