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Industry Analysis Case Study

Case Title:

Independence Air: Transformation from Regional Carrier to a Low Cost Carrier

Publication Year : 2004

Authors: Shahida Kathawala, Senthil Ganeshan

Industry: Transportation


Case Code: INA0066B

Teaching Note: Not Available

Structured Assignment: Not Available

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For 14 years, Independence Air had operated as a regional carrier, under the name of Atlantic Coast Airlines (ACA). However, in June 2004, ACA was re-launched as a Low Cost Carrier (LCC), “Independence Air” under its CEO and Chairman Kerry Skeen (Skeen). The case discusses the steps taken by the management to transform the regional carrier to a LCC focusing on the operational, marketing and branding aspects. The case also focuses on the competitive landscape in the US airline industry.

Pedagogical Objectives:

  • The challenges that the airline might face transforming from a regional to a low cost carrier
  • The feasibility of the model being used by Independence Air of using both smaller Regional Jets and larger Airbus to operate a low cost airline
  • The strategy being employed by the airline to stimulate traffic in the regional and major cities
  • The competitive challenges it might face from the low cost and legacy carriers.

Keywords : Independence Air; Atlantic Coast Airlines; Kerry Skeen; Hub; Industry Analysis Case Study; Regional Airline; Low Cost Carrier; United Airlines; US Airways; Low Cost Business Model; ICLUBS; IJETS; FLYI; Regional Jets; Transformation

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