THE empire strikes back, and how. In an aggressive and unusual—at least going by the standards of lethargic public sector units—marketing move, the state-owned Indian Airlines last fortnight announced the introduction of metro shuttle flights or flights every hour between Delhi and Mumbai, the sector which has the highest passenger load factor, beginning March 29. The experiment, if successful, is to be extended to other popular sectors the airline services—Mumbai-Bangalore, Mumbai-Chennai and Delhi-Bangalore.
By launching 10 flights everyday between the capital and Mumbai in both morning and evening peak hours, Indian Airlines is clearly trying to retain some of the passenger share it had lost to private airlines since the initiation of the open sky policy in the early '90s. And quite candidly too. "The flights are designed to reach out to the passengers not only with the clear message that the national carrier is still the best to serve them but also to give a tough time to competitors, particularly Jet Airways," says Indian Airlines' director of public relations, R.N. Pathak.
Indian Airlines' decision—which ranks among some of its smartest ones—follows Sahara Airlines' slashing fares on some of its key routes. The move will also intensify competition as private airlines are also doing well on metro routes, which are being eyed with increasing avariciousness by Indian Airlines. Naturally, the competitors are cautious. Points out Sahara Airlines general manager Kapil Kaul: "It is a bold and tactical move which may change the dynamics of the aviation industry. It is a good signal for all competitors, if Indian Airlines does not reduce its fares." Says a spokesman for Jet Airways: "We are still watching the situation. Our best bet is the good service and reputation of Jet Airways which the customer recognises easily and readily."
To be sure, the progress of the Indian Airlines experiment will be closely monitored by all players. The special introductory offer will continue till April 29 and special market surveys thereafter will determine whether the passenger is prepared for it. If positive, Indian Airlines offi-cials say, similar marketing approaches will be repeated on other profitable sectors.
The new mood of aggression in Indian Airlines is best reflected in the man behind the move, chairman-cum-managing director Anil Baijal. An experienced aviation bureaucrat, he has for instance been hammering home the point that price reduction in fares is not the key to increase business, nor is it economical, so it's time to look elsewhere. "Indian Airlines will not resort to fare discounting as a strategy to attract passengers but instead the airline will be offering better connections, convenient timings and more options to the passengers. A Mumbai-Delhi shuttle service with a flight every hour is a step in this direction," Baijal says.
The airline is already on an ambitious expansion programme. The management proposes to give a "brand new look" to all its Airbus 300 and Boeing 737 aircraft in its fleet. The refurbishing work is scheduled to be completed by June for the Airbus craft and by September for the Boeings. This, Indian Airlines managers say, will give the airlines the competitive edge it requires. Says one of them: "Our biggest asset has been our strong fleet of 55 aircraft and the huge network spanning the West Asian region to Southeast Asia. This is the best effort yet to utilise them. Our aggressive marketing for the last two years is paying dividends as the airline has been able to make profits in the last two consecutive years. " During the last couple of years, Indian Airlines has improved its aircraft utilisation, moving up from about 1,700 hours per aircraft per year in 1995-96 to about 2,800 hours in 1998-99 and is expected to make a profit this year.
Baijal has other flightplans up his sleeve as well. Indian Airlines is exploring the possibility of starting more flights to Southeast Asia and consolidating its hold in other regions, making sure that its sister concern Air-India is not hurt in the bargain. Baijal reportedly feels that there is enough room for both.
The new moves have heated up the aviation industry, where users suffer from unusually high flying costs, tempting Britain's high-flying Virgin Air to make a bid for entry. Says veteran aviation writer Brij Bhardwaj: "The moves are good for customers but flying costs in India are still high because of poor productivity and the inflated cost of aviation turbine fuel." Hopefully, if Indian Airlines's move finds an echo in the industry, the customer would still be king.
