The paradox of brand Air India: Not delivering on a premium experience, price, or value

As the privatisation push for Air India gains traction, bidders have to contend with a unique challenge: brand Air India. Given the brand legacy, the government wants the buyer to continue with the brand. Indeed, retaining the brand is one of the conditions laid out in the sale’s terms—and, justifiably so. There is no denying the fact that the Air India brand is high in both recall value, and familiarity quotient. Yet, with over a hundred planes connecting 97 destinations, there is a large disconnect between expectations, and reality. Addressing this will be critical to the airline’s future.
A brand, at its core, is a set of associations that translates to a higher willingness to pay, a high mindshare, and ideally, a lower cost. The ultimate goal is for the brand to become synonymous with a category. This extends to airlines as well. Ideally, the name of the airline should resonate with certain characteristics—for instance, low cost, punctuality, safety, technology, or reputation. These, in turn, are delivered via a consistent focus on mindshare, marketshare, and service delivery.