Case Details
FLY91: India’s Youngest Regional Airline Amid Growth Hurdles
The case revolves around India's newly established regional airline, FLY91. The airline was set up in response to the government's initiative to make air travel accessible to all citizens. FLY91 began its operations in regional locations in Maharashtra, operating from Goa airport with a limited number of aircraft and turboprops in March 2024 to connect the unconnected areas of the country . At the time, several low-cost carrier airlines faced financial difficulties, which prompted FLY91's founder, Manoj Chacko, to carefully plan the airline's growth while ensuring its continued operation. Key concerns included the sustainability of the current business model and preparing for future expansion, given the increasing number of regional airline competitors attracted by government incentives. As Chacko considered the way forward, he had a few options to evaluate. These options included: Should FLY91 expand beyond UDAN, collaborate with competitors as a feeder airline, or pivot toward an ultra-low-cost model?
Learning Objective:
- To understand the competition intensity in a highly capital-intensive industry.
- To understand the role of the Government in boosting up an industry and role of government intervention in addressing both the opportunities and risks of policy-driven incentives.
- To devise strategic actions for sustainability and growth of the new business in a highly competitive business landscape.
- To evaluate the trade-offs between different growth strategies for a regional airline operating in a heavily regulated environment.