Title: Some limitations to the success of the Low-Cost Carrier business model in India

Authors: Arijit Mazumdar

Addresses: Department of Political Science, Miami University, 218 Harrison Hall, Oxford, OH 45056, USA

Abstract: Despite the growth in market share of Indian Low-Cost Carriers (LCCs), there are certain factors inhibiting the success of the LCC business model in India. This paper argues that the success of the LCC business model in India is limited by three exogenous factors – the lack of the concept of secondary airports, the route dispersal guidelines, and the excessively high costs of Aircraft Turbine Fuel (ATF). These factors are unique to India and a direct result of the flawed policies is adopted by the government. These policies also indicate the extent to which air transport in India is still regulated.

Keywords: air transport regulation; air transport deregulation; aircraft turbine fuel; ATF; Air Deccan; India; low-cost carriers; LCCs; route dispersal guidelines; secondary airports; business models.

DOI: 10.1504/WRITR.2008.021487

World Review of Intermodal Transportation Research, 2008 Vol.2 No.1, pp.84 - 100

Published online: 28 Nov 2008 *

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