Responses of Air India to the new challenges of the competitive environment

Abstract

Between 1932 and 2015, the airline company Air India has known major development steps. The story began with Tata Sons, when J.R.D decided to open weekly airmail service between Karachi and Madras and founded Tata Airlines. After WWII, Tata airlines became a public enterprise named Air India. After 1960 and until 2000, Air India entered the jet age and pursued to develop its fleet. At that time, Air India (international flights) and Indian Airlines (domestic flights) were considered as two different public companies. In 2007, the government decided to merge these two airlines in one body: Air India Limited. Between 2007 and 2011, because of competition, the company knew financial problems and need to restructure in order to fit in the Star Alliance. Today, the question of privatization is still a major problem for the government and Air India is considered as the third largest carrier in India. Thus, we can see that this company managed to get used to all these situations through years, but in 2015, what are the new challenges Air India is confronted to?