Preview

oligopoly in indiaN AIRLINE INDUSTRY

Powerful Essays
Open Document
Open Document
9580 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
oligopoly in indiaN AIRLINE INDUSTRY
A PROJECT REPORT ON

“CARTELS IN AVIATION INDUSTRY”
(Report submitted on July 12, 2011)

SUBMITTED TO:
COMPETITION COMMISSION OF INDIA
BY:
PREETI MECHAN
Vth YEAR
GUJARAT NATIONAL LAW UNIVERSITY
Email: preeti.mechan@gmail.com

1

DISCLAIMER
This project report/dissertation has been prepared by the author as an intern under the
Internship Programme of the Competition Commission of India for academic purposes only.
The views expressed in the report are personal to the intern and do not necessarily reflect the view of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing.

2

TABLE OF CONTENTS

I.

Acknowledgement.........................................................................................4

II.

Objective........................................................................................................5

III.

Research Methodology.................................................................................5

IV.

Chapter I
Introduction...................................................................................................6

V.

Chapter II
Aviation Industry in India............................................................................7
History of Aviation Industry in India..........................................................7
Drivers to Growth in Indian Aviation Sector.............................................10
Players in the Aviation Sector......................................................................10

VI.

Chapter III
Importance of Competition in the Market..................................................14

VII.

Chapter IV
Competition Issues Related to Indian Aviation



Bibliography: 1.1 Indian Aviation Sector (up till 1986): India’s first air mail service was started by the Tata Airlines in 1912 autonomous corporations were created on August 1, 1953. In 1953, the government nationalized the airlines via the Air Corporations Act, 1953, which gave birth to Indian

You May Also Find These Documents Helpful

  • Satisfactory Essays

    the Secretary of the Corporation and the affixation of the seal of the Corporation shall not…

    • 747 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Southwest Airlines is part of an oligopoly. An oligopoly is defined as an instance where there are only a small number of producers in a market; due to the small numbers, if one company changes their prices of their goods or services, the others will do the same in order to keep it competitive. Running as an oligopoly can be both helpful and painful for the consumer. For instance, Southwest Airlines has set prices they have for certain flights to certain locations. They will run these prices as long as they competitively can. The price will differ slightly due to economic conditions, i.e. fuel costs, but for the most part, the only real variations show up during high…

    • 277 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    SOR Syllabus

    • 9196 Words
    • 37 Pages

    • not to modify the Material or any part of the Material without the express prior written permission of the Board of…

    • 9196 Words
    • 37 Pages
    Powerful Essays
  • Good Essays

    For the UK airline industry discuss the way in which its market structure affects the ability for firms to set prices and to make profits. (16 marks)…

    • 1075 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    History of Sox

    • 2863 Words
    • 12 Pages

    6. Commission Resources and Authority . . . . . . . . . 10…

    • 2863 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    The U.S. Airline Industry

    • 1205 Words
    • 4 Pages

    The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.…

    • 1205 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Airline Deregulation

    • 1597 Words
    • 7 Pages

    The United States Airline Deregulation Act of 1978 was a dramatic turning point in America. It was the first systematic dismantling of a comprehensive system of government control since the Supreme Court declared the National Recovery Act unconstitutional in 1935. It was also part of a broader movement that, with varying degrees of thoroughness, transformed such industries as trucking, railroads, buses, cable television, stock exchange brokerage, oil and gas, telecommunications, financial markets, and even local electric and gas utilities. Since the Airline Deregulation Act of 1978, the airline industry has experienced significant growth, productivity, and the public has seen significant decreases in fares. The effects that Airline deregulation has had are generally a positive effect on the industry. This essay examines how further deregulation of the federally controlled and owned air traffic control systems will allow for further growth of the industry in the future.…

    • 1597 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    A regulated industry maintained safety standards across the board. With this system the government was able to ensure better pay for employees It enabled the government to over charge on consistent routes to cover for less economic but still necessary routes. Also a monopoly allowed for a higher percentage of seats to be filled and cargo to be filled, at lower cost. (maximum potential) However, the unionized pay for the employes was far to expensive to allow for owners to generate much capital without charging consumers more. Therefore less consumers could afford, or wanted to pay for expensive travel. this lead the decline of airline traffic.…

    • 371 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The views expressed in this report are those of the author and do not necessarily reflect…

    • 23585 Words
    • 95 Pages
    Powerful Essays
  • Good Essays

    Rivalry is the competitive struggle between companies in an industry to gain market share from each other. A more intense rivalry usually means that there are lower prices and more spending on non-price-competitive weapons. These would be things such as in-flight complimentary items like drinks and snacks. A more intense rivalry will lower prices and raise costs. This means that this makes the window for profitability smaller. If the rivalry is less intense, the company can raise its prices and spend less money on non-price-competitive weapons. This would mean an increase in industry profits. There are four main factors that deal with the intensity of rivalry among competitors in an industry: industry competitive structure, demand conditions, cost conditions, and exit barriers.…

    • 733 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The question can be is. How has the economy of the airline industry performed throughout the many decades it has been? In addition, what did the industry do as it has gone through many events that have challenged its survival? In this type of industry, we can say that it has seen their share of success in profits but has seen its share of overwhelming down trends. You can definitely consider there is this industry depends on the economy around it and solely affected by it too. The airline industry has seen highs when the demand for their services was increased and the decreases when events had a major impact on their survival of the industry. While there are obvious externalities that affect the outcome of this industry, there is more to it. Monetary and fiscal policies affect the industry. Along with everything that has affects this industry, there is a noticeable wage inequality that has intensified.…

    • 2884 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Price discrimination or price differentiation exists when sales of identical goods or services are transacted at different prices from the same provider. In a theoretical market with perfect information, perfect substitutes, and no transaction costs or prohibition on secondary exchange (or re-selling) to prevent arbitrage, price discrimination can only be a feature of monopolistic and oligopolistic markets, where market power can be exercised. However, product heterogeneity, market frictions or high fixed costs (which make marginal-cost pricing unsustainable in the long run) can allow for some degree of differential pricing to different consumers, even in fully competitive retail or industrial markets. Price discrimination also occurs when the same price is charged to customers who have different supply costs. Price discrimination can exist when three conditions are met: consumers differ in their demands for a given good or service, a firm has market power, and the firm can prevent or limit arbitrage.…

    • 12845 Words
    • 52 Pages
    Better Essays
  • Powerful Essays

    Economics Oligopoly

    • 1812 Words
    • 8 Pages

    Sloman, J., and Hinde, K. (2007). Economics for business, 4th edition. Essex: Pearson Education Limited.…

    • 1812 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    oligopoly

    • 1615 Words
    • 7 Pages

    Oligopoly is a market with a few sellers. Fewness means in this market number of firms is such that one firm’s action affects the other firms in the market. Hence whenever any firm makes any decision regarding price etc, it has to take into account the behavioural response of the other. This main feature of oligopoly is called interdependence. This interdependence brings forth the need for strategic decision making. Strategic decision making involves conjectural variation. Conjectural variation implies one firm’s assumption about the response of other firms to its action. Suppose there are two firms A and B. Suppose A wants to produce more. In order to judge whether this decision of increasing production is gainful or not A has to conjecture how B will react to this decision. This is conjectural variation. The nature of the equilibrium changes with change in conjectural variation pattern.…

    • 1615 Words
    • 7 Pages
    Good Essays
  • Good Essays

    (3) All other words and expressions used herein and not defined but defined in the Act shall…

    • 7570 Words
    • 31 Pages
    Good Essays