Posts Tagged ‘strategy’

PKP InterCity – strategy masterstroke!

Wednesday, 1 April 2015

PKP_Intercity_HQ_Zelazna

Where the new strategy was developed – PKP IC HQ in ul. Zelażna, Warsaw. Photo By Adrian Grycuk (CC BY-SA 3.0 pl), via Wikimedia Commons.

How to make PKP IC profitable? That was the question that new PKP IC boss, Jacek Leonkiewicz, set his best brains to solve. The challenge is formidable, at the top end of the market – served by the EIC and EICP (Pendolino) services – the carrier is facing stiff competition from the domestic airlines and the private motor car. In the lower end of the market – served by the TLK services – the train operating company is losing passengers as a result of the bargain basement tactics of PolskiBus and its me too imitators.

With the company stuck between a rock and a hard place, the solution dreamt up by the best brains in PKP IC is stunning. Not for them the complexities of BTWT’s own 10-point reform plan. No, the PKP IC solution stands out in its brilliance and simplicity: in the timetable changes, to be introduced towards the end of 2015, journey times for TLK trains will be extended!

But, dear reader, I can hear you protest, won’t even more TLK passengers desert as a result? Precisely! When it can shown that the TLK sector is a declining business, more trains can be withdrawn, or the sector can be closed down completely. With less expensive trains to run – PKP IC’s finances will improve dramatically!

A big hat tip to Rynek Kolejowy for today’s story.

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