Case Study : Ai Airlines Limited

1755 Words Oct 7th, 2015 8 Pages
1. Executive summary

AI Airlines Limited is a new consumer airline, a wholly owned subsidiary of Air India Limited. It is being organized to take advantage of a specific gap in the short-haul domestic travel market. The gap exists in low cost service out of Delhi. The gap in the availability of low-cost service in and out of the Mumbai hub coupled with the demand for passenger travel on selected routes from Mumbai indicates that a new entrant airline could be expected to capture a significant portion of current air travel business at that hub.
The management of AI Airlines Limited is experienced in airline industry including the engineering and the flight operations. Previously the management grew Air India Express from two Airbus 319 to a fleet of 11 Boeing 737-800 and five Airbus 320 series aircraft.
1.1 Objectives
The Company has the following objectives:
1. To obtain required certifications on or before month nine.
2. To commence revenue service on or before the end of year one.
3. To raise sufficient "seed" and "bridge" capital in a timely fashion to financially enable these objectives.
4. To commence operations with four Airbus 319 series aircraft in month one, six by end of month four, and eight by end of month six of flight operations.

1.2 Mission
AI Airlines Limited has a mission to provide safe, efficient, low-cost consumer air travel service. The service will emphasize safety as its highest priority. We will operate the newest and best maintained aircraft…

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