The King of Good Times is now the pauper of bad times.

The growth of airlines industry in India seems to have happened quite unplanned.
Before, any meaningful comment can be offered, one needs to study the market share , the patterns of traffic, the cost structure, infrastructure management practices etc. of of each airline.
However,  few observations can be recorded at this stage:
1. Airlines seems to find competition uncomfortable. It is time that they are able to work out strategy of differentiating on factors other than price. As a customer, I have not preferred price alone. I would be necessarily guided by the preferred time slot for my travel, the experience of on-time travel. However, the airlines do not seem to have been able monetize their such USPs.
2. Certainly, [only] some routes may be profitable! but is it only the average, day-in-day-out load factor the only parameter driving that routes profitability?
3. The airlines are facing the monopoly in several other areas, like airport charges, fuel cost etc. But, this is not very much new for the industry as a whole. There are many industries  which have many customers [ meaning difficult to achieve segmentation and loyalty]; many players [Classic application of ‘Rule of 3’ – relatively fragmented supply side] and few [oligopolistic] structure of input suppliers [meaning that not much control on your input cost and /or quality performance parameters].

Certainly, the industry is in unenviable situation. But do they have not landed themselves in that condition themselves? If so, why, someone else should help them out?

[This is copy of my Comment to the original blog-post on BlogAdda’s Spicy Saturday Picks – Nov. 12, ’11]

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Author: ASHOK M VAISHNAV

In July 2011, I opted to retire from my active career as a practicing management professional. In the 38 years that I pursued this career, I had opportunity to work in diverse capacities, in small-to-medium-to-large engineering companies. Whether I was setting up Greenfield projects or Brownfield projects, nurturing the new start-ups or accelerating the stabilized unit to a next phase growth, I had many more occasions to take the paths uncharted. The life then was so challenging! One of the biggest casualty in that phase was my disregards towards my hobbies - Be with The Family, Enjoy Music form Films of 1940s to mid-1970s period, write on whatever I liked to read, pursue amateur photography and indulge in solving the chess problems. So I commenced my Second Innings to focus on this area of my life as the primary occupation. At the end of four years, I am now quite a regular blogger. I have been able to build a few very strong pen-relationships. I maintain contact with 38-years of my First Innings as freelance trainer and process facilitator. And yet, The woods are lovely, dark and deep. But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep.

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