Five Economics concepts of Air India

                             AIR INDIA

5 Economics concepts used by Air India -

Oligopoly Market-

There are various airlines already available (Such as Indigo, Jet Airways, Air Asia and etc.) that provide same type of service, the service is undifferentiated.

Price Discrimination-

As the airline companies prices are dynamic in  nature, i.e, it changes with demand.

People respond to Incentives-

Air India has been trying to attract passangers by providing Incentives such as during Independence Day they came up with ‘18INDAY’ promocode to provide discount upto 45%.

Income Elasticity of Demand-

When Income of consumer increases they tend to use this service

more, as air travels are costlier than any other mode of travel.

Economies of Scope-

Air India also provide catering service in mid air along with their transportation service.