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Case Title:

Virgin: Will it be a success in the Indian sky?

Publication Year : 2005

Authors: Abhijit Sinha, Bitan Chakraborty

Industry: Transportation

Region:India

Case Code: MES0027K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
The low cost airline was a phenomenon worldwide and was increasing steadily. In the mature aviation market of the US and Europe, the low cost airlines business model was successful. But in the country like India, where aviation market was still at the nascent stage, the success of the low cost business model was a debatable issue. After the liberalisation in 1991, the Indian sky experienced the entry of a few private as well as foreign players in the low cost aviation business. Virgin Blue, which was a part of Richard Branson’s Virgin group, was successful in the low cost aviation business in the skies of Australia, New Zealand and South Africa and entered the Indian sky. The case discussed in detail the low cost business model of the aviation industry its target markets and challenges. Finally, the case highlighted the challenges faced by Virgin Blue in the fiercely competitive Indian aviation industry. Besides, it examined whether the company could replicate its successful business model in India. The case included a detailed note on the Indian civil aviation industry, covering the profile of the major players, low cost business model followed by other low cost airlines in the Indian aviation industry. It also elaborated on India’s civil aviation policy and the statutory requirements to be fulfilled by a company, to enter and operate in the industry.

Pedagogical Objectives:

  • To give a glimpse about the Indian aviation industry
  • To discuss in details how Low Cost Airlines (LCA) act as a key differentiator in Indian aviation industry
  • To discuss the segmentation-targeting-positioning aspect in aviation industry
  • The 4Ps of marketing and its application in Indian aviation industry
  • The market entry strategy adopted by a new player to enter into a competitive market, problems associated with entry into new market and how to overcome the problems.

Keywords : Civil aviation sector; Virgin Atlantic; Richard Branson; Virgin Blue; Indian aviation industry; Evolution of low cost airlines in India; Market Entry Strategies Case Study; Low cost airlines and cost cutting measures; Virgin in India; Virgin’s sky ahead

Contents : 
Virgin Atlantic
Virgin Blue
Indian Aviation Industry
Evolution of Low - Cost Airlines in India
Low Cost Airlines and Cost Cutting Measures
Virgin in India
Virgin’s Sky Ahead
Comparative Fare Structure
Return Apex Fare Scheme of Air Sahara

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