Indigo Airlines- Meandering through the Public Policies on the Success Runway – Can it Fly Higher?
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Case Code: BSTR507 Case Length: 14 Pages Period: 2015 - 16 Pub Date: 2017 Teaching Note: Available |
Price: Rs.400 Organization: Indigo Airlines Industry: Civil Aviation Countries: India Themes: Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
In the year 1953, the Government of India purchased a majority stake in the Tata-owned airline – Air India International. This led to a period of nationalization of the air transport industry through the Air Corporation Act. In the 1990s, with the introduction of the Liberalization, Privatization, and Globalization (LPG) policy, the monopoly model in this sector broke down and the doors were thrown open to private players. From the point Damania Airlines entered the Indian market in the year 1991 till the year 2015, government regulations had been active but with varying degrees of intervention. High ATF (Air Turbine Fuel) prices, which were determined through government intervention, Route Dispersal Guidelines (RDGs) and the Open Skies policy, threatened the financial viability of airlines operating in India and became the reason for the exit of many players from the market....
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