Indian Airways

Brief for Participant: Indian Airways

Background:

Indian Airways is trying to resolve some organizational issues. They have constituted a Corporate Strategic Planning Group, comprising of some of the best minds in the Company, to identify solutions to these issues.

Your task:

You are a member of the OD Team Planning Group, and your immediate task is to make a presentation to the Chairperson of the Group, who wants to hear the views of each member before calling a meeting of all of them. In your presentation, you need to cover the following questions:

1. What are the factors that impact customer satisfaction in the aviation business in India?

2. What are the problems and issues facing Indian Airways, given its current situation?

3. What steps need to be initiated by Indian Airways to seize the opportunities or counter the threats facing the Company? Please provide specific change management plan for each of your recommendations.

Background

In the early 1980s, the Indian Government decided to introduce budget airline services, which would be within the reach of the Indian middle class. The Government tied up with AmericaSouth, which had been extremely successful in running similar airline services in the United States.

AmericaSouth grabbed the opportunity and formed a joint venture with the Government; called Indian Airways. AmericaSouth had 26% stake in Indian Airways.

Indian Airways introduced its first sector between Delhi & Mumbai in December 1983. The Airline was launched as the “People’s Airline” and the fares were priced attractively. Subsequently, in spite of price hikes from time to time, the airline remained within the reach of the Indian middle class and became a runaway success. Indian Airways’ sales grew by leaps and bounds.

Over a period of time, Indian Airways consolidated its competitive position by launching flights to various other sectors. In the late 1980s,...