Indian Airlines Case Study

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A study of two airline carriers and reasons for their failure
Air India (Public Ownership):
This enterprise was started as the Tata Airlines. Later acquired partly by the Indian Government, it was set up a joint sector company, Air India International in early 1948. Also the nationalization of Indian Airlines (IA) in 1953 brought the domestic civil aviation sector under the purview of Indian Government. This nationalization was expected to spur growth, promote economic activity, rush assistance in times of natural calamities like flood, famine and earthquake, foster national integration and, above all, serve as the second line of defense in the event of war with another country.
These Government-owned airlines dominated Indian aviation industry till the mid-1990s. In the 1990’s the liberalization of the economy of the country and subsequently the aviation industry caused the entry of many private players including Jet Airways, SpiceJet, Indigo, Kingfisher etc. This also helped bring along foreign investment as international market opened up in terms of bilateral liberalization. The downfall of Indian Airlines is prevalent from this period onwards.
Air India currently operates a fleet of 113 aircraft, making it one of the largest airlines (by fleet size) in Asia and the world. It was once the largest operator in the Indian subcontinent with a market share of over 60%. Due to several reasons studied below, its standing dropped with a decline in domestic market share by 25%. However, after financial restructuring and enforcement of strict rules and regulations, the airlines showed signs of turning around. The airlines bolstered its financial and physical performance with a 44% slash in its operating losses in 2013-...

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