Other States - Rajasthan   

`Major transition in aviation sector'

Special Correspondent

JAIPUR: The growth of the aviation sector in the country is in sync with the trend of the service sector overtaking manufacturing sector the world over. All the four Ps -- product, prices, placement and promotion -- have undergone major transition in the wake of the concepts of no frills airlines and low cost carriers gaining ground.

Changed concept

"The product has seen a change from the full service model to an LCC model. The entire concept of service has changed. It is not the quality of meals or snacks that matters but the basic or the core service -- transportation," Sunil Arora, Principal Secretary to Rajasthan Chief Minister, said delivering a lecture on "Issues, challenges and careers in aviation sector" at the Jaipuria Institute of Management here over the weekend.

Mr. Arora, former Chairman of Indian Airlines, said pricing was now on the basis of "first come first served" leading to what is called "dynamic fares". "The biggest issue is yields and not revenue. The revenue part is taken care of by the increase in volume generated as a consequence of discounted fares," he observed.

The placement aspect also has undergone major changes with the elimination of agents after Internet taking over as the major distribution channel. The increased competition made aggressive promotion necessary.

There was a need to reduce the fixed cost and one of the ways to achieve this was to create alternative and cheaper airports. "The perishable nature of the services has to be realised along with the need for optimum use of aircraft," Mr. Arora said.

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