A Study on Airline Revenue Management

ICIMP-2018 | SPECIAL ISSUE | SEP-2018 | Published Online: 03 October 2018    PDF ( 248 KB )
Dr. A.Muthusamy 1; G.Kalpana 2

1Professor, Department of International Business, Alagappa University, Karaikudi, Tamilanadu (India)

2Research Scholar (Full-Time), Department of Commerce, Alagappa University, Karaikudi, Tamilanadu (India)


Revenue management systems are used to determine the optimal price of selling a seat at any given point in time. The information required to be able to make this decision depends on a number of factors, not all of which have traditionally been available. The revenue management is very important in the current scenario because the competition and a variety of economic pressures increase, all airlines, full service and low cost carriers alike, need to maximize revenue in order to succeed and cultivate. Air traffic has grown enormously and expected to have a growth which would be above 25 per cent in the travel segment. In the present scenario around 12 domestic airlines and above 60 international airlines are operating in India. With the growth in the economy and stability of the country India has become one of the preferred locations for the trade and commerce activities. The growth of airline traffic in Aviation Industry in India is almost four times above international average. Aviation Industry in India has placed the biggest order for aircrafts globally. The civil aviation sector is important for India as it is interlinked with other sectors in the economy and generates income and employment. The growth in the Indian economy has increased the Gross Domestic Product above 8 per cent and this high growth rate will be sustained for a good number of years. A well-managed civil aviation infrastructure and efficiently-run, competitive airlines are a must in today’s globalized world. The presence of such infrastructure and airlines in India can bring down transport and communication costs, promote commercial and cultural activity, create jobs, and ultimately unify people and markets. Air transport services deliver the final product of civil aviation industries to customers around the globe. The researcher’s attempt to study the airline revenue management.

Revenue Management, Airline Revenue and Corporate Strategies
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