Abstract

The case discusses how Indian Airlines Limited (IA), a public sector undertaking (PSU) in India, lost its grip on the market as a result of the increasing competition from the private air carriers. It shows how IA, once a monopoly in the airline industry, was reduced to a mere competitor by the early 2000s, as it was unable to match its service levels with those of private airline companies. The case also looks at the increasing competition being faced by IA from low-cost carriers and other major full-service airline companies in India since the early 2000s. It explains the various measures taken up by IA with a view to fighting the fierce competition from private carriers especially the low-cost carriers. The case further discusses whether these measures are sufficient to take on the increasing competition from private players.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Gain an understanding of marketing communication campaigns and their components
• Gain insights into the factors that contribute to the success of a communication campaign
• Appreciate the complexities of tourism marketing
• Understand the unique challenges in conducting a worldwide campaign to promote a country as a tourist destination, particularly with regard to the number and variety of stakeholders involved, and their possible responses
• Understand the current status of the Indian tourism industry and to analyze its future prospects.

Keywords

Indian Airlines Limited, Logo, GoAir, Indian Airline Industry, Jet Airways, Air Sahara, Point-to-Point Fares, Kingfisher Airlines, Customer Service, Flexifares, Advance Purchase Excursion (APEX) Fares, Frequent Flier Programme, Air Deccan, Kingfisher Airlines, SpiceJet