1 AIT Asian Institute of Technology

Competitive advantages and sustainability of Air India Express : a case study

AuthorSaha, Kaushik
Call NumberAIT RSPR no.SM-06-85
Subject(s)Air India Express
Airlines--India

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-06-85
AbstractAir India Express is the sole international low cost airline operating from the Indian subcontinent with fares 25-40% cheaper than legacy carriers. It was launched in response to the demand from the Gulf and South East Asia for lower prices. With growing demand for cheaper fares and emerging new players in the Indian aviation industry, there arises an urgency to assess the strategy, competitive advantages and sustainability factors of Air India Express. Study suggests that low cost airlines can operate at 20% lower fares than full service airlines and Air India Express currently operates at an average load factor of 92% which is greater than its load factor required to break even. The airlines' differentiation factor is the value addition it creates by providing free standardized meals and limited entertainment aboard its international flights. Rising fuel prices remain a concern along with poor personal perception, consumers have about services of its sister airline, Air India. Scarcities of talent pool along with a well defined entry strategy for S.E. Asia are some of the growth impediments for the airline. The airlines' strategy and services place the airline intermediary of Low cost airline and New World Carrier in the position nlatrlx
Year2006
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Swierczek, Fredric W.;
Examination Committee(s)Dimmitt, Nicholas J. ;Zimmermann, Willi ;
DegreeResearch Studies Project Report (M. BA.) - Asian Institute of Technology, 2006


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