The New 'Indian' Airlines

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Case Details:

Case Code : MKTG123
Case Length : 19 Pages
Period : 2002 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : Indian Airlines Ltd.
Industry : Airline
Countries : India

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Please note:

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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Background Note

On May 28, 1953, the GoI enacted the Air Corporations Act, and nationalized the nine airlines companies then operating, namely, Airways-India, Deccan Airways, Himalayan Aviation, Air India, Indian National Airways, Bharat Airways, Airservices of India, Kalinga Airways and Tata Airlines.

The GoI then established two companies namely, Indian Airlines Corporation (IAC) and Air India International (renamed as Air India Limited (AI) in March 1994), and transferred the assets of the eight airline companies to these two companies.

After this, IAC and AI were the only companies providing air transport services in India. While IAC was a domestic air carrier, AI provided international air services. In addition to domestic services, IAC also provided air transport services from India to certain neighboring countries. In 1986, the GoI introduced the Air Taxi Scheme and allowed private air carriers to offer domestic air transport services...

From Old to New

During 2002-2005, IA took up 'a series of long-term and short-term actions' aimed at improving the quality of services it provided...

The Fleet: Prior to its fleet replacement program in 2005, IA's last acquisition of aircraft was back in the year 1993 when it purchased eleven A-319s. IA had reportedly sent a letter to aircraft manufacturing companies Airbus and Boeing on January 4, 1997 notifying them about IA's requirement for new fleet of aircraft. However, fleet acquisition became a 'top priority' only in 1999...

Human Resource Management: During 2000, IA re-deployed its existing staff from non-operational departments like stores and finance to commercial divisions where they were required to perform front-line activities...

Utilizing IT: In 2000, IA hosted a new website through which passengers could gain online access to seat availability status, schedule information and frequent flyer mileage status...

Delighting the Customer
During the early 2000s, IA took various measures such as conducting training programs for its personnel in order to improve the quality of services it was providing...

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