Aviators in India, in their race to get ahead, fell way behind
Circa 1997-98 –11.5 million passengers carried by four domestic aviation giants with a combined fleet of 25 – Indian Airlines (and Alliance Air), Jet Airways, Sahara Airlines and Archana Airways (yes, it did exist!). A kingly 50.7% share belongs to Indian Airlines. And profits? Well, that’s the only good news doing the rounds, with Rs.3.6 billion in operating profits flashing on their financial tablets! (Even Archana Airways with a fleet-size of just 2, made Rs.16.8 million in profits). The Indian domestic aviation sector ‘has arrived’! Or has it?
Circa 2002-03 – The number of airlines has been reduced to just three, with Indian Airlines, Sahara and Jet making merry with 53 aircrafts. Of course, Jet has the largest market share of 48.4%, with a fleet size of 41. Shamefully though, it becomes the only airline returning operating loss that year, of Rs.521.3 million.
Circa ‘the present’ – Six years back, some unknown face called G. R. Gopinath entered the Indian aviation sector with hopes of making the common Indian fly with the thoroughly untested ‘Low Cost Carrier’ LCC model, which had been a success in many First World countries.
Circa 1997-98 –11.5 million passengers carried by four domestic aviation giants with a combined fleet of 25 – Indian Airlines (and Alliance Air), Jet Airways, Sahara Airlines and Archana Airways (yes, it did exist!). A kingly 50.7% share belongs to Indian Airlines. And profits? Well, that’s the only good news doing the rounds, with Rs.3.6 billion in operating profits flashing on their financial tablets! (Even Archana Airways with a fleet-size of just 2, made Rs.16.8 million in profits). The Indian domestic aviation sector ‘has arrived’! Or has it?
Circa 2002-03 – The number of airlines has been reduced to just three, with Indian Airlines, Sahara and Jet making merry with 53 aircrafts. Of course, Jet has the largest market share of 48.4%, with a fleet size of 41. Shamefully though, it becomes the only airline returning operating loss that year, of Rs.521.3 million.
Circa ‘the present’ – Six years back, some unknown face called G. R. Gopinath entered the Indian aviation sector with hopes of making the common Indian fly with the thoroughly untested ‘Low Cost Carrier’ LCC model, which had been a success in many First World countries.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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