Monday, October 26, 2009
Blog readers may be interested in a recent brief article on India's air transport sector. See Jitendra Singh Rathore & Anamika Sharma, Sr., Airline Industry in India Facing the Free Fall, Strategic Innovators, at 74 (available from SSRN here). From the abstract:
In India, the last decade or so showed prominent signs and a lot of promise for fast-paced growth in the airline sector. The industry, before the gloomy signs of global recession began to appear, was soaring high. But, eventually, the economic downturn impacted the aviation sector in India and dampened the spirits of the players - big and small. India is still a new arena for private players in the airlines business and stakes are high for one and all. In the present times, there is an immediate need to formulate effective strategies to survive through the recessionary phase. It is difficult for those in business to maintain their bottom lines and therefore they should resort to restructuring and consolidation. The airline companies are gasping for breath. The factors like government policies, strategic alliances and fuel prices etc. have a direct bearing on the industry The paper is an attempt to study the prevailing state of Indian airline industry and the strategies adopted by the premium as well as the low-frills airlines to sustain and survive in these times. In this context, the strategies adopted by a few major airlines of the world are also discussed.