This ‘P’ of marketing had given Indian (Airlines) a competitive edge over others. But with the opening up of Indian skies, the state-owned airline had to change track
Indian has been “protected” by being deployed on
certain routes as an exclusive airline where consumers have no option but to use it. So it’s out of compulsion and not choice that consumers choose it. The government aid has also helped, for cost benefit of such routes for a private player are adverse. The logic to protect Indian is to have a stable stronghold in a strategic sector where the rest of the players are private. This is a remnant of our socialist policy. Not surprising, since this ‘P’ does make companies complacent. However, when the Indian skies were thrown open to private players, the state-owned airline wasn’t able to hold its own in terms of market share, which kept sliding in favour of new private entrants like Jet & Kingfisher. Today, competition is forcing Indian to concentrate on activities like brand building, customer satisfaction, et al. Thus partial protection in a consumerist economy actually works to the detriment of the protected entity.
Indian has been “protected” by being deployed on
certain routes as an exclusive airline where consumers have no option but to use it. So it’s out of compulsion and not choice that consumers choose it. The government aid has also helped, for cost benefit of such routes for a private player are adverse. The logic to protect Indian is to have a stable stronghold in a strategic sector where the rest of the players are private. This is a remnant of our socialist policy. Not surprising, since this ‘P’ does make companies complacent. However, when the Indian skies were thrown open to private players, the state-owned airline wasn’t able to hold its own in terms of market share, which kept sliding in favour of new private entrants like Jet & Kingfisher. Today, competition is forcing Indian to concentrate on activities like brand building, customer satisfaction, et al. Thus partial protection in a consumerist economy actually works to the detriment of the protected entity. 
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