I hope this pathetic airlines get shut...my wishes are always with Kingfisher to Shut ...i am happy companies have stopped supplying ATF :) Its amazing...these buggers have troubled me a lot...they dont take care of passengers when their flight gets canceled abroad (Dubai) and their MD is also waste...he does not bother of passengers...!!
Gopinath started Air Deccan so that the less privileged class can fly. His profits did not fly. Mallya purchased it to make profits by extending the coverage of classes.
Flying spirits and flying planes are different businesses.In high profit margin sectors, you can allow some of the profits to leak in your extravagant style of operating, if the margins are high or the poor customer is ready to bear your extravagance.
Mallya could have balanced between high and low margins between the two classes.
The less previleged class can not have the comfort any more.
The businessman sees only the profits.
This draws me to a similar example. TITAN with its acclaimed and so called aggressive marketing made the pioneers HMT and Allwyn to close shop. Titan wanted to sell in Europe.Now Europe has occupied Indian windows. Unable to cope, Titan has reduced watch production to the minimal and has moved to the more lucrative Jewellery.At the outset, Titan killed Indian watch industry.Business triumphs, industry and the consumer may not.
well. its down to spice, indigo, go air jet lite and konnect now, aix..in low cost jet , kf, ai in ffare.. kf is good luxury carrier.. jet is average to good.... ai is unreliable..
Low cost airline is a myth. Look at the fare structure. Big chunk goes as fuel surcharge, tax, etc. What remains is so little and think about the cost of an aircraft, its operational cost,base fuel, maintenance, staff cost,insurance etc..assuming an average 80% load factor and the revenue generated will not cover the expenditure. This industry is employing a large number of people directly and indirectly and help boom in business travel and leisure travel (domestic and foreign tourists)generate huge tax money for the government. Unlike Air India, these airlines are surviving on their own. Closing down will affect many employees and others . Government should think about reducing fuel cost of these airlines.
Re: Low cost airline is not feasible in India.
by D J on Sep 29, 2011 09:01 AM
If Low cost is not feasible, why IndiGo and SpiceJet are in good profit??
Re: Re: Low cost airline is not feasible in India.
by Tom Dick on Sep 29, 2011 07:49 PM
Yeah! wait for some time when they have to pay back for the aircrafts they bought. This is a very volatile business. One incident, one strike, one embargo etc..anything could happen. It all started with Freddie laker and his skytrain...since then almost all low cost carriers wound up. Indigo and spice may have some operating profit as of now..but wait and see. However, I hope these carriers survive because even I prefer to fly at a lower cost whenever possible.
He should infact sell complete airline to someone else before it goes belly up. There are enough low cost airlines in the world (and India) which are making good money and they will continue to serve VFM segment. So the problem is not the low cost airline business model, but something else. Selling liqor in India is easy, but airlines is a different ball game
Re: not your
by kush chatterjee on Sep 29, 2011 08:40 AM
You have absolutely nailed it to the T.
A case to prove your point further is the performance of Air Asia. I have not seen such reliable, quality service even from the so called 5 star kingfisher airlines. The quality reflects in their balance sheet as well.
Selling liquor and running an airline are definitely not the same thing!!
He has proved to be poor business role model.None of his co's are doing well including UB,as his share holders .He may have high turnover but returns to shar holders are pathetic.
My daughter is regular traveler from Coimbatore to chennai, due to unfavourable attitude of the counter staff, for the last 3 months we switched over to another airline, which starts just 20 mins after. Mallaya should think about this.
