The DGCA (Director General of Civil Aviation) – the aviation industry regulator has prohibited our domestic carriers from selling merchandise on board their flights. Is this an instance of  the regulator flexing it’s muscles to show who is in control which is a common practice by our bureaucrats or do they really have a valid reason to oppose the sale of merchandise on board aircrafts? The reasons  given are “safety concerns” – whatever those might be, is anybody’s guess!

How could selling cameras, watches or sunglasses aboard an aircraft be a cause for safety for airline  travel is beyond me?

Low costs carriers abroad rely on sale of merchandise to bring in 5-10% of their turnover. For our cash starved domestic carriers sale of merchandise could be a viable alternative source of revenue and boost their profits which are currently non existent or a faint trickle! Some of them have even looked at some innovative ways of selling adspace onboard to boost their revenues.

For IB BM students this is a prime example of how the legal environment affects the operations of a business and the need for businesses to make plans keeping the business environment in mind.