CONSOLIDATION IN THE SKY- A CASE STUDY ON THE QUEST FOR SUPREMACY BETWEEN JETLITE AND KINGFISHER AIRLINES

Dr Salma Ahmed Reader Department of Business Administration, Aligarh Muslim University, Aligarh (salmaahmed6@rediffmail.com) Yasser Mahfooz Lecturer Department of Business Administration, Aligarh Muslim University, Aligarh (yassermahfooz@rediffmail.cm)

History of the Airline Industry: In December 1912, the first domestic air route was opened between Delhi and Karachi by The Indian State Air Services (in collaboration with Imperial Airways of the UK). This marked a new beginning in India. Three years later, Tata Sons started a regular airmail service between Karachi and Madras. At that time, there were a few transport companies operating within and also beyond the frontiers of the country, carrying both air cargo and passengers. Some of these were Tata Airlines, Indian National Airways, Air Service of India, Deccan Airways, Ambica Airways, Bharat Airways and Mistry Airways. The Tata Airlines was converted into a public limited company in the year 1946 and renamed Air India Limited. In 1948 a joint sector company-Air India International was established by the Government of India and Air India headed by J.R.D. Tata. In 1953, the Parliament passed the Air Corporation Act. Air India International and Indian Airlines Corporation came into formal existence and Air India International was nationalized. The Indian Aviation sector was liberalized in commence in 1990 with private sector players being allowed to operate as air taxi operators in India. A number of private players commenced domestic operations like Damania, East-West, Modiluft, Air Sahara and NEPC, entered the industry. However, a decade later none of them have survived. Today the Indian Aviation sector is dotted with new players like Air Deccan, Indian Airlines, SpiceJet, GoAir, Air Indigo, KingFisher, Jagson Airlines and Jet Air. The domestic market share is given in Table –1. Air Deccan: A wholly... [continues]

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