AN ANALYSIS ON DOMESTIC AIRLINES CAPACITY PERFORMANCE IN INDIA

Capacity Growth and Utilisation are the leading indicators of Airlines performance. This paper compares the Airlines capacity growth and utilisation of Full Service Airlines and Low Cost Airlines. The data for the study were taken from Directorate General of Civil Aviation websites from 2005 to 2015. The findings indicate that Low Cost Airlines are able to deploy higher capacity growth and utilise the capacity during the last 10 year. However, in response to excellent performance of Low Cost Airlines in a short span of time, Full Service Airlines have been fighting hard to achieve higher capacity utilisation, matching the levels achieved by Low Cost Airlines. The gap between the Low Cost Airlines and Full Service Airlines operating performance are narrowing down as a result of competitive fares, further study establish that distinction between Full Service Airlines and Low Cost Airlines no longer exists in Indian market and passenger are not having any preference on business models for their travel choice.