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Compare Swa and Indian Lcc

In: Other Topics

Submitted By nandhini
Words 610
Pages 3
SWA offered low fare by actually reducing the cost but in India, the airlines that offer low fares are in reality not low cost operations. Indian LCC provided low fare by enhance revenues by selling food and drinks at higher cost and selling services such as insurance, hotel reservations, and rental cars on its website.
Indian LCC used to charge for priority boarding and seat allocation and some airlines may put some hidden costs during booking through credit card payment etc.
In India, LCC model was introduced in 2003 by Air Deccan. It offers short haul routes in India. Air Deccan followed the strategy of charging for baggage and food etc.
Lessons to be learned from SWA are ,Indian Low cost carrier should follow the strategy of SWA to reduce the actual cost without increase in associated costs other than ticket cost and also without reduction in wages and benefits of employees.
Indian LCC should provide excellent customer service as like SWA without any compromise.
The model of SWA can be applied in Indian industry , for the success of short haul low fare airlines population is very important because number of opted travellers will be more. India have good population than US the model will workout. In contrast changes in political environment is more frequent in India compared with US, this union or political forces will influence the people that will ionize employees in airline industry results in reduced co-operation, team work .In this view SWA mode will not be success in India.

SWA strategy
Low fare by reducing all operational costs except wages, benefits and profit sharing. sustained relationships among the managers , employees, business partners.
Maintained co operative labor relations , all employees and pilot were un ionized independent from union and political activities.
Maintained shared goals , knowledge and mutual

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