Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : COM0015

Year : 2004

Industry : Transportation

Region : Asia

Teaching Note:Available

Structured Assignment :Available

Abstract: The concept of a Low Cost Carrier (LCC), that got instant popularity in the US in 1970s, was adopted in Europe in the 1980s. Asia was a little slow in picking up the trend. The first LCC in Asia, the 'Orient Thai', started in the mid-1990s in Thailand, faced lot of problems as the government of Thailand saw it as a threat to its national carrier, 'Thai Airways International'.

Subsequent deregulation of the domestic aviation industry in Thailand came as a breather for 'Orient Thai'. Following this example many other LCCs sprang up in different Asian countries like the 'Cebu Pacific Air' (Philippines), 'Air Asia' (Malayasia) and Deccan Air (India).

Seeking to tap the potential of LCCs, even the national carriers jumped into the fray in 2003. In December 2003, Singapore Airlines (SIA) announced the launch of its forthcoming LCC – 'Tiger Airways'. Thai Airways was also planning to launch its own LCC , 'Nok Air', by mid-2004.