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CASE STUDY

IMAGE MAKEOVER AT INDIAN AIRLINES

The Indian Aviation industry is the fastest growing market in the world after China and Japan. Until the liberalization in the early 90s, the Indian Civil aviation Industry was controlled by the government of India. In the mid 90s, the airline Industry opened up with the entry of new private carriers. Industry figures indicate the domestic passenger segment growth to be at 12% P a. and growth for international segment at 7%. A report from the Ministry of Civil aviation estimates that by the year 2010, 25 to 40 million international passengers will fly through Indian airports, while around 45 to 70 million passengers will be flying in the domestic front. At present, the market leader, Jet airways along with Air sahara controls 46% of the Market share, while Indiancontrols 25%. Air Deccan controls 13% and Spice jet 6% with Kingfisher having 8% share. Indian Airlines commenced operations in the year 1953, with an initial capital of Rs.3.25 Crores, under the Air Corporation Act. It was formed by nationalizing and merging a group of eight airlines. The Airline was primarily interested with the task of serving the domestic sector and neighbouring countries. Over the years, combined with Air India, it had a near total monopoly over the Indian Skies.

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On December 7, 2005, Indian Airlines went in for a name Change and has dropped the word Airlines. It is now known as Indian and has also come out with a new logo. World over, airlines have gone in for a new logo after a decade or so while Indian Airlines has opted to do so after nearly 40 Years. The logo is contemporary graphic representation inspired by the wheel of the sun temple at Konark. The logo is a partly visible blue wheel on the orange tail and represents timeless motion, convergance and divergance. It embodies solidity and trust that has stood the test of time. The word Indian would be inscribed on the body of the aircraft both in English and Devanagari script. The effects seems to be more in the direction of identifying the airline closely with the Indian Passenger, who of late, given the wide choice of flying options available in the market, seems to be drifting away from this airline. Also the word Indian could evoke a bit of nationalism in everyones minds. This makeover has been designed by a leading name in the advertising world namely RK Swamy BBDO. Important identification symbols like Airport signs, tickets, boarding passes and all customer contact points will also carry the new colours. According to Praful Patel, Civil Aviation Minister, the new logo gives the airline a bold, striking, Progressive, distinctive image and indicates symbolically that it is all geared up to face the competition. It represents a new ethos. From Indian Airlines corporation( I.A.C) to Indian Airlines(I.A) and finally to just Indian, the national domestic carrier has had a long haul since it was first formed under the Air Corporation Act, 1953.

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The timing of this makeover seems to be very strategic in view of the fact that the Airline has a mega plan to acquire 43 Aircrafts, which requires resources on a large scale. Therefore it needs to approach the capital market for funds, for which the airline needs a positive image. However for this attempt at transformation to succeed, it has to be backed up with actual service performancs on the ground; a mere cosmetic change of logo would just not suffice. The signals emanating point out to several sweeping changes in the airline in the future and the makeover to Indian just seems to be first step in that Direction.

QUESTIONS:
1) What is the symbolic representation of the new logo of Indian?

2) What is the advertising strategy behind the new logo?

3) Do you think that the logo/ name change is just a superficial facial

touch to generate some interest in the airline?

4) What is the strategic implication of the timing of the Makeover at

Indian Airlines?

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