The Cost of Monopoly

Flight cancellations, delayed refunds and passenger distress revealed how weak regulation and market dominance erode consumer rights, turning a compliance lapse into a systemic aviation crisis

- ALOK RANJAN

In a market without choice, the consumer stops being king and becomes collateral

Almost 50 years ago, when I was a student of MBA at IIM Ahmedabad, I opted for marketing as my area of specialisation. If I had to sum up the essence of sales and marketing in one sentence, it would be that the customer is the king.

Business concerns thrive and survive on the extent to which the consumer is satisfied with their product or service. The recent Indigo imbroglio indicates the culture of a company which has thrown this age-old marketing adage into the garbage bin. The newspapers and electronic media have been overflowing with photographs or visuals of distraught passengers crowding at airports, helplessly waiting to know whether their flights have been cancelled or delayed, and whether the luggage checked in is going to be returned soon. They were also unsure if the refunds would come and to what extent. They were giving vent to impotent “airport rage” at the hapless lower-level staff of Indigo Airlines, but to no avail. Customers, for Indigo, were of no consequence, let alone having any illusions of enjoying a regal status. Yet, Indigo is a profitable airline espousing honourable intentions, trying to say that the fault does not lie with them.