Modeling Strategic Decisions: The Case of Airlines in India
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Case Details:
Case Code : OPER103
Case Length : 15 Pages
Period : 2002-2008
Organization : -
Pub Date : 2012
Teaching Note :Available
Countries : India
Industry : Airlines
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Commercial Aviation in India
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Commercial aviation in India had its beginnings in the first airline started by J.R.D. Tata before India’s independence in 1947. Other private carriers followed. Before 1953, all the airlines in India were private ones. In 1953, the Government of India, under the Air Corporations Act, nationalized and merged the eight private airlines that existed then and created two State-run airlines out of them. One was Air India, for serving international travelers to and from India, and the other was Indian Airlines, dedicated to serving domestic passengers. For almost 40 years, these two carriers enjoyed a monopolistic position in their respective passenger segments. They were protected from competition within India by the Air Corporations Act which did not permit any other airline to provide scheduled services to and from or within India.
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In later years, Indian Airlines was allowed to operate a limited number of overseas routes The government, through the Directorate General of Civil Aviation (DGCA) and Airport Authorities of India (AAI), exercised tight and firm control over all aspects of civil aviation including the expansion of the network and management of the airports and airspace, licensing of pilots, and certifying aircraft.
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