Industry Analysis Case Study

Independence Air: Transformation from Regional Carrier to a Low Cost Carrier

OR

Abstract:
For 14 years, Independence Air had operated as a regional carrier, under the name of Atlantic Coast Airlines (ACA). However, in June 2004, ACA was re-launched as a Low Cost Carrier (LCC), “Independence Air” under its CEO and Chairman Kerry Skeen (Skeen). The case discusses the steps taken by the management to transform the regional carrier to a LCC focusing on the operational, marketing and branding aspects. The case also focuses on the competitive landscape in the US airline industry.

Pedagogical Objectives:

• The challenges that the airline might face transforming from a regional to a low cost carrier
• The feasibility of the model being used by Independence Air of using both smaller Regional Jets and larger Airbus to operate a low cost airline
• The strategy being employed by the airline to stimulate traffic in the regional and major cities
• The competitive challenges it might face from the low cost and legacy carriers.

Keywords : Independence Air; Atlantic Coast Airlines; Kerry Skeen; Hub; Industry Analysis Case Study; Regional Airline; Low Cost Carrier; United Airlines; US Airways; Low Cost Business Model; ICLUBS; IJETS; FLYI; Regional Jets; Transformation