Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0015

Year : 2004

Industry : Transportation

Region : Asia

Teaching Note:Available

Structured Assignment :Available

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Introduction:The Low Cost Carriers (LCC) revolution that started in the 1970s in America did not leave Asia untouched. The 1990s witnessed the emergence of LCCs in Thailand in the form of 'Orient Thai Airlines'.

Though the concept did not pick up instantly in Asia, forces of change like the September 11 terrorist attack on the US in 2001 and the Severe Acute Respiratory Syndrome (SARS) epidemic in 2003 gave impetus to the LCC movement.

The major reason was that the governments, who had been favouring national carriers by discouraging competitors, started encouraging LCCs to increase regional tourism, which was hit hard by these world events. Many players who entered the LCC segment witnessed considerable growth and even the national carriers of countries like Thailand and Singapore jumped into this sector to have a share of the pie.