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Industry Analysis Case Study
Case Title:
Independence Air: Transformation from Regional Carrier to a Low Cost Carrier
Publication Year : 2004
Authors: Shahida Kathawala, Senthil Ganeshan
Industry: Airlines
Region: USA
Case Code: INA0039B
Teaching Note: Not Available
Structured Assignment: Not Available
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
