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Price Movements of the Competing Airlines in the Indian Market: An Empirical Study (A)

Goutam Dutta and Sumitro Santra

No WP2015-01-02, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: In this paper, we analyze the price movements of the Indian domestic airline industry. In the first part, we conduct a detailed econometric analysis of five selected domestic routes. In the second part, we study the weekend effect on the average airfare. Our research suggests that competition steps up airfares as the departure date comes closer and weekend airfares are higher than weekday airfares. The application of Revenue Management and Dynamic Pricing is the common practice in the Indian domestic airlines industry.

Date: 2015-01-14
New Economics Papers: this item is included in nep-com and nep-tre
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