CONTENTS

Page No.
Acknowledgements ii
List of Tables v-x
List of Figures xi-xvii
Abbreviations xviii-xix
Glossary of Terms Used xx-xxii
Chapter: 1 INTRODUCTION 1-58
1.1 Background of the Study 1
1.2 Research Problem 5
1.3 Review of Literatures 5
1.4 Research Gaps 34
1.5 Research Questions 34
1.6 Research Objectives 37
1.7 Research Methodology 37
1.8 Plan of Chapters 56
Chapter: 2 INDIAN AVIATION SECTOR: AN OVERVIEW 59-99
2.1 Introduction 59
2.2 Origin of Aviation in India: Mythological & Practical 60
Perspectives
2.3 Evolution of Civil Aviation in India 62
2.4 Statutory Bodies of the Indian Civil Aviation Sector 72
2.5 Airline Operators of Indian Civil Aviation Sector 76
2.6 Overview of Different Parameters of Indian Civil Aviation 79
Sector
2.7 Conclusion 96
Chapter: 3 DEREGULATION OF INDIAN AVIATION SECTOR 100-166
3.1 Introduction 100
3.2 Deregulation of Air Transport: A Global Overview 100
3.3 Deregulation of Indian Civil Aviation Sector 107
Comparative Analysis of Indian Airline Sector during Pre- 116
3.4
deregulation and Post-deregulation periods
3.5 Hypotheses Testing with respect to operations and 143
performance of Indian scheduled airline operators during
Pre-deregulation and Post-deregulation periods
3.6 Conclusion 146
Appendix to Chapter 3 147
Chapter: 4 LOW COST CARRIER MODEL AND ITS GLOBAL 167-200
DEVELOPMENT
4.1 Introduction 167
4.2 Airline Business Models 168
4.3 Origin of Low Cost Carrier Business Model 171
4.4 Low Cost Carrier Business Model: A Conceptual 173
Overview
4.5 Types of Low Cost Carriers 175
4.6 Key Features of Low Cost Carrier Model 175

iii
 Page No.
4.7 Cost Saving Mechanics of Low Cost Carrier Model 177
4.8 Development of Low Cost Carrier Model: A Global 182
Overview
4.9 Conclusion 198
Chapter: 5 IMPACT OF DEREGULATION ON GOVERNMENT- 201-304
OWNED CARRIER (1994 – 2007)
5.1 Introduction 201
5.2 Comparative performance of Indian Airlines over 202
Pre-deregulation and Post-deregulation periods
5.3 Hypotheses Testing with respect to operations and 218
performance of Indian Airlines during Pre-deregulation
and Post-deregulation periods
5.4 Impact of deregulation on domestic operations and 220
performance of Indian Airlines
5.5 Comparative analysis of Government-owned and 224
Privately-owned Carriers in Indian aviation sector
5.6 Hypotheses Testing with respect to operations and 271
performance of Government-owned and Privately-owned
carriers in Post-deregulation period
5.7 Conclusion 272
Appendix to Chapter 5 274
Chapter: 6 LOW COST CARRIERS IN INDIAN AVIATION SECTOR: 305-409
A CRITICAL ANALYSIS
6.1 Introduction 305
6.2 Origin of low cost carriers in Indian aviation sector 306
6.3 Development of low cost carriers in India 307
6.4 Low cost players in Indian scheduled airline sector 308
6.5 Comparative analysis of Indian airline sector during Pre- 312
LCC entry and Post-LCC entry periods
6.6 Hypotheses testing with respect to operations and 331
performance of Indian scheduled airline operators over
Pre-LCC entry and Post-LCC entry periods
6.7 Comparative analysis of Full Service Carriers and Low 333
Cost Carriers in Indian aviation sector
6.8 Analysis of relative efficiency of Full Service Carriers and 384
Low Cost Carriers
6.9 Conclusion 390
Appendices to Chapter 6 392
Chapter: 7 SUMMARY AND CONCLUSION 410-423
7.1 Summary of findings of research work 410
7.2 Limitations of the Study 417
7.3 Scope of Further Study 418
7.4 Conclusion 419
Bibliography 424-438

iv
 List of Tables

Page
Table No. Title of Table
No.
2.1 Indian Aviation Sector: Landmark Events at a Glance 71
3.1 Chronological List of Deregulated Airline Economies 106
3.2 Private Scheduled Airliner start-ups in India during 1992-96 115
3.3 Low Cost Carrier start-ups in India during 2003-2017 116
3.4 Descriptive Statistics of Number of Scheduled Airliners 118
(Pre-Deregulation vs Post-Deregulation)
3.5 Descriptive Statistics of Fleet Size 120
(Pre-Deregulation vs Post-Deregulation)
3.6 Descriptive Statistics of Staff Strength 121
(Pre-Deregulation vs Post-Deregulation)
3.7 Descriptive Statistics of Available Seat Kilometres 123
(Pre-Deregulation vs Post-Deregulation)
3.8 Descriptive Statistics of Available Tonne Kilometres 124
(Pre-Deregulation vs Post-Deregulation)
3.9 Descriptive Statistics of Aircraft Departures 126
(Pre-Deregulation vs Post-Deregulation)
3.10 Descriptive Statistics of Aircraft Hours Flown 127
(Pre-Deregulation vs Post-Deregulation)
3.11 Descriptive Statistics of Aircraft Distance Flown 129
(Pre-Deregulation vs Post-Deregulation)
3.12 Descriptive Statistics of Passengers carried 130
(Pre-Deregulation vs Post-Deregulation)
3.13 Descriptive Statistics of Passenger-Kilometres performed 132
(Pre-Deregulation vs Post-Deregulation)
3.14 Descriptive Statistics of Passenger Tonne-Kilometres performed 133
(Pre-Deregulation vs Post-Deregulation)
3.15 Descriptive Statistics of Cargo carried 134
(Pre-Deregulation vs Post-Deregulation)
3.16 Descriptive Statistics of Freight Tonne-Kilometres performed 136
(Pre-Deregulation vs Post-Deregulation)
3.17 Descriptive Statistics of Passenger Load Factor 137
(Pre-Deregulation vs Post-Deregulation)
3.18 Descriptive Statistics of Weight Load Factor 138
(Pre-Deregulation vs Post-Deregulation)
3.19 Descriptive Statistics of Operating Revenue 140
(Pre-Deregulation vs Post-Deregulation)
3.20 Descriptive Statistics of Operating Expenses 141
(Pre-Deregulation vs Post-Deregulation)
3.21 Descriptive Statistics of Operating Result 143
(Pre-Deregulation vs Post-Deregulation)
3.22 Results of hypotheses testing with regard to airline deregulation 145
4.1 Cost Saving Mechanics of Low Cost Carriers 180
4.2 Low Cost Carrier start-ups in different aviation economies 198

v
 Page
Table No. Title of Table
No.
5.1 Descriptive Statistics of Airline Resources of Indian Airlines 204
(Pre-Deregulation vs Post-Deregulation)
5.2 Descriptive Statistics of Airline Capacity of Indian Airlines 206
(Pre-Deregulation vs Post-Deregulation)
5.3 Descriptive Statistics of Aircraft Operations of Indian Airlines 208
(Pre-Deregulation vs Post-Deregulation)
5.4 Descriptive Statistics of Passenger Operations of Indian Airlines 211
(Pre-Deregulation vs Post-Deregulation)
5.5 Descriptive Statistics of Freight Operations of Indian Airlines 214
(Pre-Deregulation vs Post-Deregulation)
5.6 Descriptive Statistics of Financial Measures of Indian Airlines 217
(Pre-Deregulation vs Post-Deregulation)
5.7 Results of hypotheses testing of operations and performance of Indian 219
Airlines
5.8 Summarised Results of Analysis of selected airline variables of 221
Indian Airlines on per aircraft basis
5.9 Calculation of p-values for Exact Binomial Test (with n = 11 and p = 222
0.5)
5.10 Summarised Results of Variable-wise Analysis of Indian Airlines 223
5.11 Calculation of p-values for Exact Binomial Test (with n = 10 and p = 223
0.5)
5.12 Fleet Size of Government-owned and Privately-owned carriers during 225
1995-96 to 2006-07
5.13 Staff Strength of Government-owned and Privately-owned carriers 226
during 1995-96 to 2006-07
5.14 ASK of Government-owned and Privately-owned carriers during 229
1995-96 to 2006-07
5.15 ASK per aircraft of Government-owned and Privately-owned carriers 230
during 1995-96 to 2006-07
5.16 ASK per employee of Government-owned and Privately-owned 231
carriers during 1995-96 to 2006-07
5.17 ATK of Government-owned and Privately-owned carriers during 233
1995-96 to 2006-07
5.18 ATK per aircraft of Government-owned and Privately-owned carriers 234
during 1995-96 to 2006-07
5.19 ATK per employee of Government-owned and Privately-owned 235
carriers during 1995-96 to 2006-07
5.20 Aircraft Hours Flown by Government-owned and Privately-owned 237
carriers during 1995-96 to 2006-07
5.21 Aircraft Hours Flown per aircraft by Government-owned and 238
Privately-owned carriers during 1995-96 to 2006-07
5.22 Aircraft Hours Flown per employee by Government-owned and 239
Privately-owned carriers during 1995-96 to 2006-07

vi
 Page
Table No. Title of Table
No.
5.23 Aircraft Distance Flown by Government-owned and Privately-owned 240
carriers during 1995-96 to 2006-07
5.24 Aircraft Distance Flown per aircraft by Government-owned and 241
Privately-owned carriers during 1995-96 to 2006-07
5.25 Aircraft Distance Flown per employee by Government-owned and 242
Privately-owned carriers during 1995-96 to 2006-07
5.26 Passengers carried by Government-owned and Privately-owned 244
carriers during 1995-96 to 2006-07
5.27 Passengers carried per aircraft by Government-owned and Privately- 245
owned carriers during 1995-96 to 2006-07
5.28 Passengers carried per employee by Government-owned and 246
Privately-owned carriers during 1995-96 to 2006-07
5.29 Passenger-Kilometres performed by Government-owned and 247
Privately-owned carriers during 1995-96 to 2006-07
5.30 Passenger-Kilometres performed per aircraft by Government-owned 248
and Privately-owned carriers during 1995-96 to 2006-07
5.31 Passenger-Kilometres performed per employee by Government- 249
owned and Privately-owned carriers during 1995-96 to 2006-07
5.32 Passenger Tonne-Kilometres performed by Government-owned and 251
Privately-owned carriers during 1995-96 to 2006-07
5.33 Passenger Tonne-Kilometres performed per aircraft by Government- 252
owned and Privately-owned carriers during 1995-96 to 2006-07
5.34 Passenger Tonne-Kilometres performed per employee by 253
Government-owned and Privately-owned carriers during 1995-96 to
2006-07
5.35 Freight carried by Government-owned and Privately-owned carriers 254
during 1995-96 to 2006-07
5.36 Freight carried per aircraft by Government owned and Privately- 255
owned carriers during 1995-96 to 2006-07
5.37 Freight carried per employee by Government-owned and Privately- 256
owned carriers during 1995-96 to 2006-07
5.38 Freight Tonne-Kilometres performed by Government-owned and 257
Privately-owned carriers during 1995-96 to 2006-07
5.39 Freight Tonne-Kilometres performed per aircraft by Government- 258
owned and Privately-owned carriers during 1995-96 to 2006-07
5.40 Freight Tonne-Kilometres performed per employee by Government- 259
owned and Privately-owned carriers during 1995-96 to 2006-07
5.41 Operating Revenues of Government-owned and Privately-owned 261
carriers during 1995-96 to 2006-07
5.42 Operating Revenue per aircraft of Government-owned and Privately- 262
owned carriers during 1995-96 to 2006-07
5.43 Operating Revenue per employee of Government-owned and 263
Privately-owned carriers during 1995-96 to 2006-07

vii
 Page
Table No. Title of Table
No.
5.44 Operating Expenses of Government-owned and Privately-owned 264
carriers during 1995-96 to 2006-07
5.45 Operating Expense per aircraft of Government-owned and Privately- 265
owned carriers during 1995-96 to 2006-07
5.46 Operating Expense per employee of Government-owned and 266
Privately-owned carriers during 1995-96 to 2006-07
5.47 Operating Result of Government-owned and Privately-owned carriers 268
during 1995-96 to 2006-07
5.48 Operating Result per aircraft of Government-owned and Privately- 269
owned carriers during 1995-96 to 2006-07
5.49 Operating Result per employee of Government-owned and Privately- 270
owned carriers during 1995-96 to 2006-07
5.50 Results of hypotheses testing of operations and performance of 272
Government-owned and Privately-owned airlines
6.1 Low Cost Carrier start-ups in India 308
6.2 Descriptive Statistics of Airline Resources 315
(Pre-LCC entry vs Post-LCC entry)
6.3 Descriptive Statistics of Airline Capacity 317
(Pre-LCC entry vs Post-LCC entry)
6.4 Descriptive Statistics of Aircraft Operations 321
(Pre-LCC entry vs Post-LCC entry)
6.5 Descriptive Statistics of Passenger Operations 324
(Pre-LCC entry vs Post-LCC entry)
6.6 Descriptive Statistics of Freight Operations 327
(Pre-LCC entry vs Post-LCC entry)
6.7 Descriptive Statistics of Financial Measures 331
(Pre-LCC entry vs Post-LCC entry)
6.8 Results of hypotheses testing with regard to entry of low cost carriers 332
6.9 Fleet Size of FSCs & LCCs during 2005-06 to 2016-17 335
6.10 Staff Strength of FSCs & LCCs during 2005-06 to 2016-17 336
6.11 ASK of FSCs & LCCs during 2005-06 to 2016-17 339
6.12 ASK per aircraft of FSCs & LCCs during 2005-06 to 2016-17 340
6.13 ASK per employee of FSCs & LCCs during 2005-06 to 2016-17 341
6.14 ATK of FSCs & LCCs during 2005-06 to 2016-17 342
6.15 ATK per aircraft of FSCs & LCCs during 2005-06 to 2016-17 343
6.16 ATK per employee of FSCs & LCCs during 2005-06 to 2016-17 344
6.17 Aircraft Departures by FSCs & LCCs during 2005-06 to 2016-17 346
6.18 Aircraft Departures per aircraft of FSCs & LCCs during 2005-06 to 347
2016-17
6.19 Aircraft Departures per employee of FSC & LCC during 2005-06 to 348
2016-17
6.20 Aircraft Hours Flown by FSCs & LCCs during 2005-06 to 2016-17 349

viii
 Page
Table No. Title of Table
No.
6.21 Aircraft Hours Flown per aircraft of FSCs & LCCs during 2005-06 to 350
2016-17
6.22 Aircraft Hours Flown per employee of FSCs & LCCs during 2005-06 351
to 2016-17
6.23 Aircraft Distance Flown by FSCs & LCCs during 2005-06 to 2016-17 353
6.24 Aircraft Distance Flown per aircraft of FSCs & LCCs during 2005- 354
06 to 2016-17
6.25 Aircraft Distance Flown per employee of FSCs & LCCs during 2005- 355
06 to 2016-17
6.26 Passengers carried by FSCs & LCCs during 2005-06 to 2016-17 356
6.27 Passengers carried per aircraft of FSCs & LCCs during 2005-06 to 357
2016-17
6.28 Passenger carried per employee of FSCs & LCCs during 2005-06 to 358
2016-17
6.29 Passenger-Kilometres performed by FSCs & LCCs during 2005-06 to 360
2016-17
6.30 Passenger-Kilometres performed per aircraft of FSCs & LCCs during 361
2005-06 to 2016-17
6.31 Passenger-Kilometres performed per employee of FSCs & LCCs 362
during 2005-06 to 2016-17
6.32 Passenger Tonne-Kilometres by FSCs & LCCs during 2005-06 to 363
2016-17
6.33 Passenger Tonne-Kilometres performed per aircraft of FSCs & LCCs 364
during 2005-06 to 2016-17
6.34 Passenger Tonne-Kilometres performed per employee of FSCs & 365
LCCs during 2005-06 to 2016-17
6.35 Freight carried by FSCs & LCCs during 2005-06 to 2016-17 367
6.36 Freight carried per aircraft of FSCs & LCCs during 2005-06 to 368
2015-16
6.37 Freight carried per employee of FSCs & LCCs during 2005-06 to 369
2016-17
6.38 Freight Tonne-Kilometres by FSCs & LCCs during 2005-06 to 370
2016-17
6.39 Freight Tonne-Kilometres per aircraft of FSCs & LCCs during 371
2005-06 to 2016-17
6.40 Freight Tonne-Kilometres per employee of FSCs & LCCs during 372
2005-06 to 2016-17
6.41 Operating Revenue of FSCs & LCCs during 2005-06 to 2016-17 374
6.42 Operating Revenue per aircraft of FSCs & LCCs during 2005-06 to 375
2016-17
6.43 Operating Revenue per employee of FSCs & LCCs during 2005-06 to 376
2016-17
6.44 Operating Expenses of FSCs & LCCs during 2005-06 to 2016-17 377

ix
 Page
Table No. Title of Table
No.
6.45 Operating Expense per aircraft of FSCs & LCCs during 2005-06 to 378
2016-17
6.46 Operating Expense per employee of FSCs & LCCs during 2005-06 to 379
2016-17
6.47 Operating Results of FSCs & LCCs during 2005-06 to 2016-17 380
6.48 Operating Result per aircraft of FSCs & LCCs during 2005-06 to 381
2016-17
6.49 Operating Result per employee of FSCs & LCCs during 2005-06 to 382
2016-17
6.50 Values of Input and Output Variables for measuring relative 385
efficiency
6.51 Correlation between Input and Output Variables 385
2
6.52 Regression (Multiple) Analysis Table showing R , F-statistic and p- 386
values
6.53 DEA Score (Technical Efficiency) of scheduled carriers in Indian 389
airline sector

x
 List of Figures

Figure Page
Title of Figure
No. No.
1.1 Schematic Chart linking Objectives of the Study with 58
Chapterisation
2.1 Number of Indian scheduled airline operators 79
2.2 Fleet Size of Indian scheduled airline operators 80
2.3 Staff Strength of Indian scheduled airline operators 81
2.4 ASK of Indian scheduled airline operators 82
2.5 ATK of Indian scheduled airline operators 83
2.6 Aircraft Departures by Indian scheduled airline operators 84
2.7 Aircraft Hours Flown by Indian scheduled airline operators 85
2.8 Aircraft Distance Flown by Indian scheduled airline operators 86
2.9 No. of Passengers carried by Indian scheduled airline operators 87
2.10 Passenger-Kilometres performed by Indian scheduled airline 88
operators
2.11 Passenger Tonne-Kilometres performed by Indian scheduled 89
airline operators
2.12 Cargo carried by Indian scheduled airline operators 90
2.13 Freight Tonne-Kilometres performed by Indian scheduled airline 91
operators
2.14 Passenger Load Factor of Indian scheduled airline operators 92
2.15 Weight Load Factor of Indian scheduled airline operators 93
2.16 Operating Revenue of Indian scheduled airline operators 94
2.17 Operating Expenses of Indian scheduled airline operators 95
2.18 Operating Result of Indian scheduled airline operators 96
3.1 Number of Indian scheduled airline operators during Pre- 118
Deregulation and Post-Deregulation periods
3.2 Fleet Size during Pre-Deregulation and Post-Deregulation 119
periods
3.3 Staff Strength during Pre-Deregulation and Post-Deregulation 121
periods
3.4 ASK during Pre-Deregulation and Post-Deregulation periods 122
3.5 ATK during Pre-Deregulation and Post-Deregulation periods 124
3.6 Aircraft Departures during Pre-Deregulation and Post- 125
Deregulation periods
3.7 Aircraft Hours Flown during Pre-Deregulation and Post- 127
Deregulation periods

xi
Figure Page
Title of Figure
No. No.
3.8 Aircraft Distance Flown during Pre-Deregulation and Post- 128
Deregulation periods
3.9 Passengers carried during Pre-Deregulation and Post- 130
Deregulation periods
3.10 Passenger-Kilometres performed during Pre-Deregulation and 131
Post-Deregulation periods
3.11 Passenger Tonne-Kilometres performed during Pre-Deregulation 132
and Post-Deregulation periods
3.12 Cargo carried during Pre-Deregulation and Post-Deregulation 134
periods
3.13 Freight Tonne-Kilometres performed during Pre-Deregulation 135
and Post-Deregulation periods
3.14 PLF during Pre-Deregulation and Post-Deregulation periods 137
3.15 WLF during Pre-Deregulation and Post-Deregulation periods 138
3.16 Operating Revenue during Pre-Deregulation and Post- 139
Deregulation periods
3.17 Operating Expenses during Pre-Deregulation and Post- 141
Deregulation periods
3.18 Operating Result during Pre-Deregulation and Post-Deregulation 142
periods
4.1 Key elements of traditional Low Cost Carrier model 174
5.1 Fleet Size of Indian Airlines during Pre-Deregulation and Post- 203
Deregulation periods
5.2 Staff Strength of Indian Airlines during Pre-Deregulation and 203
Post-Deregulation periods
5.3 ASK of Indian Airlines during Pre-Deregulation and Post- 205
Deregulation periods
5.4 ATK of Indian Airlines during Pre-Deregulation and Post- 206
Deregulation periods
5.5 Aircraft Hours Flown by Indian Airlines during Pre-Deregulation 207
and Post-Deregulation periods
5.6 Aircraft Distance Flown by Indian Airlines during Pre- 208
Deregulation and Post-Deregulation periods
5.7 Number of Passengers carried by Indian Airlines during Pre- 209
Deregulation and Post-Deregulation periods
5.8 Passenger-Kilometres performed by Indian Airlines during 210
Pre-Deregulation and Post-Deregulation periods
5.9 Passenger Tonne-Kilometres performed by Indian Airlines 211
during Pre-Deregulation and Post-Deregulation periods
5.10 Freight carried by Indian Airlines during Pre-Deregulation and 212
Post-Deregulation periods

xii
Figure Page
Title of Figure
No. No.
5.11 Freight Tonne-Kilometres performed by Indian Airlines during 213
Pre-Deregulation and Post-Deregulation periods
5.12 Operating Revenue of Indian Airlines during Pre-Deregulation 215
and Post-Deregulation periods
5.13 Operating Expenses of Indian Airlines during Pre-Deregulation 216
and Post-Deregulation periods
5.14 Operating Result of Indian Airlines during Pre-Deregulation and 216
Post-Deregulation periods
5.15 Fleet Size of Government-owned and Privately-owned carriers 226
during 1995-96 to 2006-07
5.16 Staff Strength of Government-owned and Privately-owned 227
carriers during 1995-96 to 2006-07
5.17 Staff Strength per aircraft of Government-owned and Privately- 228
owned carriers during 1995-96 to 2006-07
5.18 ASK of Government-owned and Privately-owned carriers during 230
1995-96 to 2006-07
5.19 ASK per aircraft of Government-owned and Privately-owned 231
carriers during 1995-96 to 2006-07
5.20 ASK per employee of Government-owned and Privately-owned 232
carriers during 1995-96 to 2006-07
5.21 ATK of Government-owned and Privately-owned carriers during 233
1995-96 to 2006-07
5.22 ATK per aircraft of Government-owned and Privately-owned 235
carriers during 1995-96 to 2006-07
5.23 ATK per employee of Government-owned and Privately-owned 236
carriers during 1995-96 to 2006-07
5.24 Aircraft Hours Flown by Government-owned and Privately- 237
owned carriers during 1995-96 to 2006-07
5.25 Aircraft Hours Flown per aircraft by Government-owned and 238
Privately-owned carriers during 1995-96 to 2006-07
5.26 Aircraft Hours Flown per employee by Government-owned and 239
Privately-owned carriers during 1995-96 to 2006-07
5.27 Aircraft Distance Flown by Government-owned and Privately- 241
owned carriers during 1995-96 to 2006-07
5.28 Aircraft Distance Flown per aircraft by Government-owned and 242
Privately-owned carriers during 1995-96 to 2006-07
5.29 Aircraft Distance Flown per employee by Government-owned 243
and Privately-owned carriers during 1995-96 to 2006-07
5.30 Passengers carried by Government-owned and Privately-owned 244
carriers during 1995-96 to 2006-07

xiii
Figure Page
Title of Figure
No. No.
5.31 Passengers carried per aircraft by Government-owned and 245
Privately-owned carriers during 1995-96 to 2006-07
5.32 Passengers carried per employee by Government-owned and 246
Privately-owned carriers during 1995-96 to 2006-07
5.33 Passenger-Kilometres performed by Government-owned and 248
Privately-owned carriers during 1995-96 to 2006-07
5.34 Passenger-Kilometres performed per aircraft by Government- 249
owned and Privately-owned carriers during 1995-96 to 2006-07
5.35 Passenger-Kilometres performed per employee by Government- 250
owned and Privately-owned carriers during 1995-96 to 2006-07
5.36 Passenger Tonne-Kilometres performed by Government-owned 251
and Privately-owned carriers during 1995-96 to 2006-07
5.37 Passenger Tonne-Kilometres performed per aircraft by 252
Government-owned and Privately-owned carriers during 1995-96
to 2006-07
5.38 Passenger Tonne-Kilometres performed per employee by 253
Government-owned and Privately-owned carriers during 1995-96
to 2006-07
5.39 Freight carried by Government-owned and Privately-owned 255
carriers during 1995-96 to 2006-07
5.40 Freight carried per aircraft by Government-owned and Privately- 256
owned carriers during 1995-96 to 2006-07
5.41 Freight carried per employee by Government-owned and 257
Privately-owned carriers during 1995-96 to 2006-07
5.42 Freight Tonne-Kilometres performed by Government-owned and 258
Privately-owned carriers during 1995-96 to 2006-07
5.43 Freight Tonne-Kilometres performed per aircraft by 259
Government-owned and Privately-owned carriers during 1995-96
to 2006-07
5.44 Freight Tonne-Kilometres performed per employee by 260
Government-owned and Privately-owned carriers during 1995-96
to 2006-07
5.45 Operating Revenue of Government-owned and Privately-owned 261
carriers during 1995-96 to 2006-07
5.46 Operating Revenue per aircraft of Government-owned and 262
Privately-owned carriers during 1995-96 to 2006-07
5.47 Operating Revenue per employee of Government-owned and 263
Privately-owned carriers during 1995-96 to 2006-07
5.48 Operating Expenses of Government-owned and Privately-owned 265
carriers during 1995-96 to 2006-07

xiv
Figure Page
Title of Figure
No. No.
5.49 Operating Expense per aircraft of Government-owned and 266
Privately-owned carriers during 1995-96 to 2006-07
5.50 Operating Expense per employee of Government-owned and 267
Privately-owned carriers during 1995-96 to 2006-07
5.51 Operating Result of Government-owned and Privately-owned 268
carriers during 1995-96 to 2006-07
5.52 Operating Result per aircraft of Government-owned and 269
Privately-owned carriers during 1995-96 to 2006-07
5.53 Operating Result per employee of Government-owned and 270
Privately-owned carriers during 1995-96 to 2006-07
6.1 Number of Scheduled Airliners during Pre-LCC entry and Post- 313
LCC entry periods
6.2 Fleet Size during Pre-LCC entry and Post-LCC entry periods 314
6.3 Staff Strength during Pre-LCC entry and Post-LCC entry periods 315
6.4 ASK during Pre-LCC entry and Post-LCC entry periods 316
6.5 ATK during Pre-LCC entry and Post-LCC entry periods 317
6.6 Aircraft Departures during Pre-LCC entry and Post-LCC entry 318
periods
6.7 Aircraft Hours Flown during Pre-LCC entry and Post-LCC entry 319
periods
6.8 Aircraft Distance Flown during Pre-LCC entry and Post-LCC 320
entry periods
6.9 Passengers Carried during Pre-LCC entry and Post-LCC entry 322
periods
6.10 Passenger-Kilometres performed during Pre-LCC entry and Post- 323
LCC entry periods
6.11 Passenger Tonne-Kilometres performed during Pre-LCC entry 324
and Post-LCC entry periods
6.12 Freight Carried during Pre-LCC entry and Post-LCC entry 325
periods
6.13 Freight Tonne-Km during Pre-LCC entry and Post-LCC entry 326
periods
6.14 Operating Revenue during Pre-LCC entry and Post-LCC entry 328
periods
6.15 Operating Expenses during Pre-LCC entry and Post-LCC entry 329
periods
6.16 Operating Result during Pre-LCC entry and Post-LCC entry 330
periods
6.17 Number of scheduled FSCs and LCCs during 2005-06 to 334
2016-17

xv
Figure Page
Title of Figure
No. No.
6.18 Fleet Size of FSCs & LCCs during 2005-06 to 2016-17 336
6.19 Staff Strength of FSCs & LCCs during 2005-06 to 2016-17 337
6.20 Staff Strength per aircraft during 2005-06 to 2016-17 338
(FSC vs LCC)
6.21 ASK of FSCs & LCCs during 2005-06 to 2016-17 339
6.22 ASK per aircraft during 2005-06 to 2016-17 (FSC vs LCC) 340
6.23 ASK per employee during 2005-06 to 2016-17 (FSC vs LCC) 341
6.24 ATK of FSCs & LCCs during 2005-06 to 2016-17 343
6.25 ATK per aircraft during 2005-06 to 2016-17 (FSC vs LCC) 344
6.26 ATK per employee during 2005-06 to 2016-17 (FSC vs LCC) 345
6.27 Aircraft Departures by FSCs & LCCs during 2005-06 to 2016-17 346
6.28 Aircraft Departures per aircraft during 2005-06 to 2016-17 347
(FSC vs LCC)
6.29 Aircraft Departures per employee during 2005-06 to 2016-17 348
(FSC vs LCC)
6.30 Aircraft Hours Flown by FSCs & LCCs during 2005-06 to 350
2016-17
6.31 Aircraft Hours Flown per aircraft during 2005-06 to 2016-17 351
(FSC vs LCC)
6.32 Aircraft Hours Flown per employee during 2005-06 to 2016-17 352
(FSC vs LCC)
6.33 Aircraft Distance Flown by FSCs & LCCs during 2005-06 to 353
2016-17
6.34 Aircraft Distance Flown per aircraft during 2005-06 to 2016-17 354
(FSC vs LCC)
6.35 Aircraft Distance Flown per employee during 2005-06 to 355
2016-17 (FSC vs LCC)
6.36 Passengers Carried by FSCs & LCCs during 2005-06 to 2016-17 357
6.37 Passengers Carried per aircraft during 2005-06 to 2015-16 358
(FSC vs LCC)
6.38 Passengers Carried per employee during 2005-06 to 2016-17 359
(FSC vs LCC)
6.39 Passenger-Kilometres by FSCs & LCCs during 2005-06 to 360
2016-17
6.40 Passenger-Kilometres per aircraft during 2005-06 to 2016-17 361
(FSC vs LCC)
6.41 Passenger-Kilometres per employee during 2005-06 to 2016-17 362
(FSC vs LCC)
6.42 Passenger Tonne-Kilometres by FSCs & LCCs during 2005-06 to 364
2016-17

xvi
Figure Page
Title of Figure
No. No.
6.43 Passenger Tonne-Kilometres per aircraft during 2005-06 to 365
2016-17 (FSC vs LCC)
6.44 Passenger Tonne-Kilometres per employee during 2005-06 to 366
2016-17 (FSC vs LCC)
6.45 Freight Carried by FSCs and LCCs during 2005-06 to 2016-17 367
6.46 Freight Carried per aircraft during 2005-06 to 2016-17 368
(FSC vs LCC)
6.47 Freight Carried per employee during 2005-06 to 2016-17 369
(FSC vs LCC)
6.48 Freight Tonne-Kilometres performed by FSCs & LCCs during 371
2005-06 to 2016-17
6.49 Freight Tonne-Kilometres per aircraft during 2005-06 to 2016-17 372
(FSC vs LCC)
6.50 Freight Tonne-Kilometres per employee during 2005-06 to 373
2016-17 (FSC vs LCC)
6.51 Operating Revenue of FSCs and LCCs during 2005-06 to 374
2016-17
6.52 Operating Revenue per aircraft during 2005-06 to 2016-17 375
(FSC vs LCC)
6.53 Operating Revenue per employee during 2005-06 to 2016-17 376
(FSC vs LCC)
6.54 Operating Expenses of FSCs and LCCs during 2005-06 to 378
2016-17
6.55 Operating Expense per aircraft during 2005-06 to 2016-17 379
(FSC vs LCC)
6.56 Operating Expense per employee during 2005-06 to 2016-17 380
(FSC vs LCC)
6.57 Operating Results of FSCs and LCCs during 2005-06 to 2016-17 381
6.58 Operating Result per aircraft during 2005-06 to 2016-17 382
(FSC vs LCC)
6.59 Operating Result per employee during 2005-06 to 2016-17 383
(FSC vs LCC)
6.60 Data Envelopment Frontier of Technical Efficiency of Indian 390
scheduled airline carriers

xvii
 LIST OF ABBREVIATIONS USED

Abbreviation Full Form

AA Alliance Air

AAI Airports Authority of India

AAInd Air Asia India
AD Aircraft Departures
ADc Air Deccan
ADF Aircraft Distance Flown
AHF Aircraft Hours Flown
AI Air India

AIE Air India Express

ASK Available Seat Kilometre

ATF Aviation Turbine Fuel
ATK Available Tonne Kilometre
ATR Air Transport Reporting
BCAS Bureau of Civil Aviation Security
CAPA Centre for Asia Pacific Aviation
CV Coefficient of Variation
DEA Data Envelopment Analysis
DEAP Data Envelopment Analysis Programme
DGCA Directorate General of Civil Aviation

DMU Decision Making Unit

FS Fleet Size
FSC Full Service Carrier
FSNC Full Service Network Carrier
GDP Gross Domestic Product
GoA Go Air
IA Indian Airlines

xviii
Abbreviation Full Form
IATA International Air Transport Association

ICAO International Civil Aviation Organization

Indg Indigo Airlines

JA Jet Airways
JL JetLite
KA Kingfisher Airlines
Km Kilometres
KR Kingfisher Red
LCC Low Cost Carrier
MCA Ministry of Civil Aviation
PKP Passenger Kilometres Performed
PLF Passenger Load Factor
RPK Revenue Passenger Kilometres
RTK Revenue Tonne Kilometres
SA Sahara Airlines
SD Standard Deviation
SJ SpiceJet
SS Staff Strength
TE Technical Efficiency
TKP Tonne Kilometres Performed
TOE Total Operating Expenses
ULCC Ultra Low Cost Carrier
VT Vistara
WLF Weight Load Factor

xix
 GLOSSARY OF TERMS USED

Aircraft Departures: It refers to the number of take-offs of aircraft. It is a measure of

the usage of the most important resource i.e. the aircraft. For statistical uses,
departures are equal to the number of landings made or flight stages flown.

Aircraft Hours Flown: Aircraft hours flown equal the sum of the products obtained by
multiplying the number of flights performed on each flight stage by the stage time (in
hours).

Aircraft Distance Flown: Aircraft distance flown equal the sum of the products
obtained by multiplying the number of flights performed on each flight stage by the
stage distance.

Available Seat Kilometres: A seat-kilometre is available when a seat is flown one

kilometre. Seat-kilometres available are equal to the sum of the products obtained by
multiplying the number of passenger seats available for sale on each flight stage by
the stage distance. It excludes seats not available for the carriage of passengers
because of the weight of fuel or other loads.

Available Tonne Kilometres: A tonne-kilometre is available when one tonne of

payload capacity is flown one kilometre. Tonne-kilometres available equals the sum
of the products obtained by multiplying the number of tonnes available for the
carriage of revenue load (passengers, freight and mail) on each flight stage by the
stage distance.

Fleet Size: It represents the total number of aircrafts held by an airline operator. It
happens to be the primary capital input of a carrier.

Freight Carried: The number of tonnes of freight carried is obtained by counting

each tonne of freight on a particular flight (with one flight number) once only and not
repeatedly on each individual stage of that flight.

Freight Tonne-Kilometres performed: A metric tonne of freight or mail carried over

a distance of one kilometre. Freight tonne-kilometres equal the sum of the products
obtained by multiplying the number of tonnes of freight, express, diplomatic bags
carried on each flight stage by the stage distance.

xx
Full Service Network Carriers: These are airline operators that focus on providing
their passengers with a wide range of services, including multiple passenger classes
inside an aircraft cabin and the possibility of connected flights.

Low Cost Carriers: These are those airline operators that offer air travel at low rates
as compared to the traditional full service network carriers by primarily cutting down
on expensive customary in-flight passenger services.

Non-Scheduled Services: Non-Scheduled Operation means an air transport service

other than scheduled air transport service and that may be on charter basis and/or non-
scheduled basis. The operator is not permitted to publish time schedule and issue
tickets to passengers.

Operating Expense: It represents the cost incurred and includes expenses incurred
towards flight operations, maintenance and overhaul, depreciation and amortisation,
user charges, station expenses, expenses on passenger services, ticketing, sales and
promotion expenses, general and administrative expenses, and other operating
expenses.

Operating Result: It represents the excess of operating revenue earned by an airline

operator over its operating expenses.

Operating Revenue: It represents the total revenue earned by an airline operator from
its operations, both scheduled and non-scheduled. It includes revenue from passenger,
excess baggage, freight, mail etc. It happens to be the aggregate of revenue from
scheduled services (viz. revenue from passenger transportation, excess baggage,
freight and mail revenue), revenue from non-scheduled services and other operating
revenue.

Passengers Carried: The number of passengers carried is obtained by counting each

passenger on a particular flight (with one flight number) once only and not repeatedly
on each individual stage of that flight, with a single exception that a passenger flying
on both the international and domestic stages of the same flight should be counted as
both a domestic and an international passenger.

Passenger-Kilometres performed: It is a measure of the volume of passenger carried

by an airline. A passenger-kilometre is performed when a passenger is carried over a

xxi
distance of one kilometre. Passenger-kilometre is the sum of the products obtained by
multiplying the number of passengers carried in each flight stage by the stage distance
flown.

Passenger Load Factor: It is a metric that measures how much of an airline’s

passenger carrying capacity is used. It is calculated by dividing Revenue Passenger
Kilometers by Available Seat Kilometers. It is one of the most critical metrics from a
capacity management perspective.

Passenger Tonne-Kilometres performed: Passenger tonne-kilometres performed are

obtained by applying a standard weight per passenger to the passenger-kilometres
performed.

Revenue Passenger: A passenger for whose transportation an air carrier receives

commercial remuneration.

Scheduled Service: Scheduled Service means an air transport service undertaken

between the two or more places and operated according to a published time table or
with flights so regular or frequent that they constitute a recognisably systematic
series, each flight being open to use by members of the public.

Staff Strength: It represents the total number of employees employed by an airline

operator. It happens to be representative of labour input.

Tonne-Kilometres performed: It is a measure of the volume of weight carried by an

airline. A tonne-kilometre is flown when a load of one metric tonne is carried over a
distance of one kilometre. Tonne-kilometres is the sum of the products obtained by
multiplying the number of tonnes of load (passengers, freight and mail) carried in
each flight stage by the stage distance flown.

Weight Load Factor: It is a metric that measures how much of an airline’s weight (of
passenger, freight, mail etc.) carrying capacity is used. For calculation of this ratio,
tonne-kilometres performed is expressed as a percentage of tonne-kilometres
available.

xxii