Economics concept faced by SPICEJET

SpiceJet is the 4th largest airline company in the country, providing domestic airline service at low cost.

FIVE ECONOMIC CONCEPT RELATED TO SPICEJET :-

1. Oligopoly Market - There are few other airline companies that provide same type of services or in other words the service they are providing are undifferentiated from others like AirIndia, Indigo, Air Asia.
2. People Respond to Incentive - They are continuously trying to come up with new offers for the passengers. Recently they where providing flight seats for only ₹999 for limited people. Other than that they are providing ₹1000 off on use of specific bank for booking.
3. Economics of scope - Apart from airline service they are also providing food services or cafe services in the middle of the journey. They are providing breakfast, lunch and dinner according to the flight timing and asking high charges for the same.
4.  Income Elasticity of Demand - As income of the people or the consumer increases there demand for the airline services increases drastically. Recently Spicejet have posted a growth by 21% in the domestic flight service.
5. Price Discrimination - As price of airline industry are so competitive and dynamic,the price changes with the demand. As demand increases the price gradually increases.