Air India Case Study

Air India was launched as a private airline in 1932 under the name of Tata Airlines by industrialist J. R. D. Tata. It was the only national carrier which flew in various international destinations at that time. In 1946, Tata Airlines became a public limited company under the name of Air India. Since then, Air India has been a source of national pride because it is regarded as one of the finest airlines which is at par with the leading airlines like Pan Am and British Airways. Air India had a mascot named ‘Maharajah’ which symbolized graciousness and high living.
Now, Air India has lost its competitive advantage and has been declining over the years. The study was done in order to analyze the declining phase of the brand. The
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airports, travel agents, airplane manufacturers, etc. earn a tidy profit but it is very ironical that these airline companies find it very difficult to break even. As this industry involves high fixed cost and low profit margins, the biggest threat to an airline in this era would be getting bankrupt because of the high cost involved. Air India is immune to such threats as it gets a strong backing from the government which nearly eliminates bankruptcy risks. Air India has a wide geographical coverage of more than 34 countries across US, far-East Europe, South-East Asia, etc. and around 51 destinations in India. However, Air India has been facing financial issues after its merger with Indian Airlines which has resulted in failing of the employees’ …show more content…
Population of this segment is also increasing but not at the same rate as that of middle income corporates. Customer service, frequent flyer miles and in-flight crew service are the major services with which we can attract this segment.
Air India positions itself as a premium / high quality brand when it comes in the airline industry. Positioning of a brand is done on various parameters like positioning statement, cultural symbols, pricing, etc. Some of them are listed below with respect to that of Air India:
 Positioning statement – The tag line of Air India is ‘Your palace in the sky’ which clearly focuses on the high income segment.
 Positioning based on cultural symbols – Air India has its mascot named as Maharajah has become the most recognizable mascot across the world. It symbolizes graciousness and high living. Maharajah also signifies royalty and highlights the Indian tradition.
 Positioning based on pricing – Air India operates in the Full Service Carrier (FSC) category and hence charges more for the services provided as compared to the Low Cost Carrier

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