Question

India's airline industry was an oligopoly, with six major players in the market. IndiGo, launched in 2006, had become India's largest airline and a dominant player, after having taken advantage of market conditions, including a rise in per capita income that led to increased demand for air travel. However, in 2018, after a decade of consistent profitability, IndiGo was experiencing a decline in profits that was affecting its share price. The airline's management needed to consider how the company could sustain its market-leading position over the long term and even increase profits, while accepting the minimal control it and its competitors had over ticket prices, amid an atmosphere of rising costs for aviation fuel and personnel costs.
At present, it is dealing with multiple crises: Shortage of pilots, financial woes of Jet Airways and issues pertaining a specific aircraft type, including engine-related problems. All of this has resulted in about 100 airplanes being grounded. Adding to the stress was the single-digit growth in passenger air traffic in January (9 percent) and February (5.71 percent).


“Basically, with less capacity, air fares went up and growth rates went down, indicating that the market was being artificially simulated by low fares,” Following graph shows impact of covid 19 on revenue of Airlies worldwide


is law of diminishing utility apply in airlines industry why/why not ?​

Answer 1

Answer:

IndiGo is India’s largest passenger airline with a market share of 53.9% as of April, 2021. We primarily operate in India’s domestic air travel market as a low-cost carrier with focus on our three pillars – offering low fares, being on-time and delivering a courteous and hassle-free experience. IndiGo has become synonymous with being on-time.

Explanation:

IndiGo has a total destination count of 91 with 67 domestic destinations and 24 International. This includes Darbhanga (DBR) which is now open for sale.

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