Air India - The Virgin Airways Saga


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR019 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

Joint ventures strategic alliances
Case Length : 8 Pages
Period : 1999 to 2001
Pub. Date : 2002
Teaching Note : Available
Organization : Air India, Virgin Airways
Industry : Airlines & Aviation
Countries : India

Abstract:

The case deals with the code sharing agreement between Air India and Virgin Airways, the second biggest airlines in UK after British Airways. The arrangement was considered to be a significant development for the ailing Air India. Under the arrangement, Virgin Airways was to fly three flights a week on the Delhi-London route. In July 2000, Virgin Airways started off with two flights a week. It was to start the third flight from October 2000. However, until late 2001, Virgin Airways was not allowed to fly a third flight. With the global aviation downturn in 2001, Virgin Airways was finding it difficult to sustain itself with two flights a week. It threatened to exit from India, if it was not allowed to fly the third flight.

Issues:

Code sharing agreement between Air India and Virgin Airways, disagreement between Air India and Virgin airways regarding third flight of Virgin Airways

Contents:

  Page No.
Introduction 1
Background Note 2
The Deal 2
Who Will Rule The Delhi-London Skies? 3
The End of the Honeymoon? 4
Exhibits 7

Keywords:

Code sharing agreement, Air India, Virgin Airways, UK , British Airways, fly three flights, week, Delhi-London route., July 2000, third flight, October 2000, 2001,global aviation downturn

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