Wednesday, July 22, 2009

Private Airline Operators

We often hear that most airline operators are running at huge losses. The reason behind this is something that remains a mystery to most of us. We decided to first delve into this question and take a look at the revenues of private airline operators of India. We decided to distinguish between private and public airline operators simply because we thought that they were 2 separate categories and should be brought together only after analyzing each separately.

Source: Ministry of Aviation, Govt. of India.

Operating revenues of Indian private airline operators
(Anyone interested in obtaining any data from us in excel format can obtain it free of cost by mailing us at factsntrends@gmail.com)

As we can see from the graph above, Jet Airways, being one of the oldest airline operators in India, has been recording the highest revenues among the private operators since the past 5 yrs and has seen consistent growth over the same period. But on the other hand, its subsidiary JetLite (formerly Sahara Airlines) has witnesses decline in revenues from 2006-07 onwards. Same has been the case with Air Deccan. One probable reason for this decline is the fierce competition that rose in the years 2005-07 and has continues till date with the number of operators more than doubling in 2009 since 2005. At the same time, an interesting thing to see is that Dr. Vijay Mallya owned Kingfisher Airlines has been showing quite a robust growth. And after acquiring Air Deccan, Dr. Mallya seems to be in a position to manoeuvre the industry in the days to come. Indigo and Spicejet also seem to be performing reasonably well steady growth in revenues. As far as Paramount and Go Air are concerned, it is too early to comment on their performance. But going by their modus operandi, they too will be in the reckoning very soon. Overall, from here, everything seems to be absolutely fine with aviation in India. Then what apparently went or is going wrong????

Keep following us to know more....... Enjoy!!!!



Aviation Industry in India

Over the past year, we have been hearing a lot from the various airlines operators of our country. Be it complaints of the effects of the slowdowns, or asking for bailouts, mass sacking and reinstating of people, allegations of not passing the profits of the low crude prices to the consumers, and the latest of them all being the introduction of something that was more prevalent in the west, Government bailout. So much noise in one industry, this was something that seemed very weird as well as exciting to us. Hence, we set out on our path of exploring and finding out the truth for ourselves. In the coming week, you will find some facts and interesting analysis from our side in the form of easy to understand graphs without any complex industry lingos as you may call it. We think this will help the common man understand what is truly happening out there because it is his right to know where is the hard earned money of the public being spent and why?