Fly Cheap and Fly more Cheaper

If a research is done on the last air travel by a middle class Indian for pleasure purpose, I am pretty sure that 8 out of 10 would say a low cost airline.

The no frills airlines like Air Deccan, Spice Jet, GoAir have made flights a middle class mode from a dream few years back.

However if you read this article, one another new low cost airlines has opened its business. Does India have the capability or affordability to sustain so many airlines.


What would following people say:

Douglas Adams: 42 would explain the answer
Scot Adams : Asok, the intern would come up with a mathematical regressive equation to solve this linearly varying 4th degree complex equation
Calvin : Hobbes the partner would do it....

If we the supposedly MBA students need to analyse, we cannot take this easy approach. So what do we do....Do we use the Porter's model or use Accounting ratios or look at some Harvard research case study

A simple answer would be....lets look at the occupancy rate of these airlines for the past 4 months and then a logical growth in addition of the number that might add to this market.

Viola!!! We already have a long term viability of these arilines and the optimum number of airlines that a country like India should have . This is what MBA are required to do......