Changing Dynamics of the Indian Civil Aviation Industry: Jet-Etihad Strategic Alliance

Changing Dynamics of the Indian Civil Aviation Industry: Jet-Etihad Strategic Alliance
Case Code: BSTR436
Case Length: 14 Pages
Period: 2012-2013
Pub Date: 2013
Teaching Note: Not Available		 Price: Rs.400
Organization: Jet Airways, Etihad Airways
Industry: Aviation
Countries: India; Middle East; Global
Themes: Strategic Alliances, Joint Ventures, Macro-Environmental Analysis, Industry Analysis
Changing Dynamics of the Indian Civil Aviation Industry: Jet-Etihad Strategic Alliance
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case is about the strategic alliance between Jet Airways (Jet), India's second largest airline both in terms of market share and passengers carried, and Etihad Airways (Etihad), the national carrier of the United Arab Emirates (UAE). The alliance was announced on April 24, 2013. According to the deal, Etihad would take a 24 percent stake in Jet for US$379 million. The deal was expected to be beneficial for both the airlines in terms of wider network, better distribution, revenue growth, and cost savings.

The strategic alliance was expected to strengthen Jet's financial position. Besides, Jet would benefit from Etihad's global network and would be able to establish a Gulf gateway in Abu Dhabi for its flights to the US, Europe, Africa, and the Middle East. Etihad would also use Jet's connectivity to capture India's rapidly growing aviation market. The case discusses the alliance in detail and the rationale behind it against the backdrop of the Indian civil aviation industry. The case ends with a discussion on the challenges that lie ahead for the alliance as it faces many regulatory hurdles.

Issues

  • Study and analyze the structure of the Indian civil aviation industry
  • Analyze the competitive strategy of a full service Indian airline and a foreign airline that wanted to tap the potential of a key emerging market
  • Understand the issues and challenges of framing strategic alliances with foreign airlines in the context of the Indian aviation industry
  • Evaluate the problems faced by a foreign airline in investing in Indian airlines and the challenges it could face in future to succeed in India's highly competitive aviation market

Contents

Keywords

Macro-environmental Analysis; Industry analysis; Industry structure; Regulatory environment; FDI Regulations; Changing Dynamics; Indian Civil Aviation Industry; Game-changing opportunity; Strategic Alliances; Synergy; Competitive strategy; Competitive advantage; Emerging market; India; Middle East

Buy this case study (Please select any one of the payment options)

Custom Search