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How Ipo Prices Are Fixed

REPORT

MICRO ECONOMICS
IN
INDIAN CIVIL AVIATION SECTOR
FACULY: PROF. C. S. SHYLAJAN

SUBMITTED BY
Dr. AKSHAY TYAGI (08BSHYD0049)
AMIT KUMAR (08BSHYD0072)
JOHNNY PRINCE (08BSHYD0324)
SMRITI MISHRA (08BSHYD0802)
V.ARTHI (08BSHYD0909)

TABLE OF CONTENTS

ACKNOWLEDGEMENT 3
INTRODUCTION 4
BRIEF HISTORY 4
MAJOR PLAYERS IN CIVIL AVIATION 6
LOW COST CARRIERS 8
DEMAND ELASTICITY 9
PRODUCTION ANALYSIS – INPUT FACTORS 11
MARKET STRUCTURE - REGULATED OLIGOPOLY 14
PRESENT SCENARIO 18
MERGERS AND ACQUISITIONS 19
SWOT ANALYSIS OF LEGACY CARRIERS 21
RECOMMENDATIONS 23
SURVEY: QUESTIONAIRE 27
CONCLUSION 30
EXHIBITS 31
REFERENCES 33

 

ACKNOWLEDGEMENT

We would sincerely like to thank our Faculty, C. S. Shylajan for giving us the opportunity to work on the project ‘Microeconomics in Indian Civil Aviation Sector’. He has been instrumental in guiding us from time to time throughout the project by squeezing out time from his hectic schedule.
In all it was a wonderful learning experience which helped us in gaining useful insights into the various economics related aspects in the Indian Aviation Sector. Lastly, we would like to thank our friends for their everlasting support and help.
 
INTRODUCTION
In the past one decade, India has seen a remarkable growth in the Aviation sector. Aviation Industry followed closed door policy by not allowing the private players to enter into the market till 1990’s. After the gates of liberalization was opened, private players started to enter into the market which not only made the airfares come to a historic low than what it was earlier but also the same industry started to give a tough fight to the Railways in terms of attracting the passengers on-board.
With the advent of the Low-Cost airlines such as Go Air, Spice Jet, Indigo etc. which were able to cater the needs of the middle class a significant growth in number of passengers was seen over these years.
But the Incessant hike in...