Airline business has always been a tricky affair, being a combination of scientific analysis and passenger psyche. The basic problem with this business is the huge amount of capital required to be invested as a startup. Complimenting to the worries are very stringent laws relating to safety and operation of the Aircraft. Airline business history has been marred with incidents of bankruptcy due to poor planning and management on part of Aircraft selection and scheduling. The laws as enacted by different governments add to additional constraints on Airline operations.
As per the Indian govt. rules it is mandatory for all Airlines, who operate on CAT-I routes, to operate flights proportionately on CAT-II and CAT-III routes. Many airlines in lieu of investing their time and effort on these routes forge alliances with existing regional airlines and get their passenger hours donated to them fulfilling the legislation. These sister concerns have helped the major players in keeping off with the worries of operating on these routes.
Airlines that will operate to and fro on the following CAT-III routes.
Delhi - Agra - Delhi
Delhi - Jabalpur
Delhi \u2013 Ludhiana - Delhi
Since these routes are not so busy ones, we chose smaller aircraft for the operations on these routes. Also there have been some restrictions due to the shorter runway lengths of smaller airports like Ludhiana and Jabalpur.
6. Dash 8-300
7. Dash 8-200
The demand for year 2004 is forecasted using various forecasting models based on the past data. The direct operating cost of the aircrafts was calculated considering the constraints offered by weather, runway length and maximum number of passengers that can be carried.
To collect the data of existing airlines on the aforesaid routes Internet was used as a main source. Since these types of data are usually classified we could not get the exact flight by flight data of the existing airlines. The method we devised was simple and hopefully effective. Data for all the routes operating from Delhi were found with the corresponding number of flights. Number of flights for one destination was found from the airline schedule. The percentage weightage of each flight was assumed to be same and hence the number of passengers travelling to one route was found.
This assumption is a justified one as Indian Airlines and its subsidiaries operate mostly one kind of aircraft (as shown in table 2.1). If we assume a uniform load factor averaged out over a whole year then this assumption is more so valid.
Data for airlines operating on these routes with their flight number, timings, type of aircraft and air fare are given in a tabulated form. We found that only Alliance Air is operating on these routes except Delhi \u2013 Ludhiana that is not served by any scheduled airlines. Seats are available only in the economy class.
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