From Run aways to Consolidation of Airlines, perfect weather may be in making
A buzz word in late 90’s became a torch bearer for new economics of Airlines. The word is Low Cost Carriers (LCC’s). The idea of making Air Travel affordable for common men. Although, the common men at that point of time has already started to get empowered with more export of services and in-flow of overseas money. As I recollect, LCC’s are getting born and a race started for getting visibility through low cost offerings. Possibly, the idea was to make middle class habitual of Air Travel and reap on the new habit. Definitely, the idea worked and volume of Air Travellers started building up. Only issue remained till date is Volume (Load) is the objective, not the sustainability. The effect of the same came up heavily on quality of product and increase in ancillary revenues.
Volume supply to cater volume and leave the competition much behind was the strategy to increase pie of market share. The defeat of multiple old players and vanishing new small ones became a trend. Service quality deteriorated with time and we lost the premium feel of Air travel. Surely, the instances of travel increased due showcased low fares. The market share scenario changed in a decade and half with new entrants taking over.
Air India, Maharaja of Indian Skies of old times, has been handed over to guardian who possibly can bring in some balance to one sided play. And here comes the consolidation of Airlines with one common care taker. Air India, Vistara and Air Asia India, all come together, may increase the share of alternate. In this formation change, some are grinding and some new players are finding space.
In this change of actors, all is good if customer is a winner. Since Airline exist to serve the people. And present day customer does not bother who is the provider until customer is provided with service.
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