To combat the tough competition, the Indian aviation sector has succeeded in implementing loyalty programs to lure customers. This article discusses the scenario of the Indian airline industry in the post-liberalization era and the dynamics of the industry during the last two years. It also discusses the various loyalty programs offered by the industry and focuses on their importance.

The Indian airline industry has been remarkably active over the past two years, with hardly a day passing without a new program, a new service initiative, or a new promotion springing up somewhere in the world. In today's highly competitive market, the airline companies have understood the importance of creating loyal customers to improve their bottom-line services. Moving in this direction, the industry is determined to move away from a price reduction loyalty program to a loyalty rewards program. In 1981, American Airlines launched loyalty programs in America that quickly spread to almost every major airlines in the world.

All the domestic airlines in India now offer customer loyalty programs in an attempt to promote customer loyalty by issuing rewards for mileage or points accumulated. Indian Airlines considers loyalty programs (with attractive benefits) as a valuable marketing vehicle to connect more closely to its customers.According to Jim Cigliano et al, "Loyalty is a positive belief, generated over the course of multiple interactions, in the value that a company and its products and/or services provide, which leads to continued interactions and purchases over time."

Marketing Mastermind Magazine, Airline Industry, Indian Airline Industry, Frequent Flyer Program, FFP, Civil Aviation, Financial Services, Kingfisher Airline, Vijay Mallya, Air Sahara, American Airlines, SpiceJet.