Comments on: Three reasons airlines in India will come out strongest from the recession http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/ Helping airlines & airports engage travelers, profitably Sun, 22 Jan 2012 21:33:57 +0000 hourly 1 By: designer replicas http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-4001 designer replicas Mon, 31 May 2010 08:34:44 +0000 http://simpliflying.com/?p=935#comment-4001 That leaves GoAir and a couple of other smaller airlines which I think might fail. That leaves GoAir and a couple of other smaller airlines which I think might fail.

]]> By: Louis Vuitton handbags http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-3610 Louis Vuitton handbags Fri, 25 Dec 2009 11:55:12 +0000 http://simpliflying.com/?p=935#comment-3610 Talking about the Indian operations, Kenji Sugino, Director – Sales, Administration and Marketing, ANA recently said “Despite the global slowdown Talking about the Indian operations, Kenji Sugino, Director – Sales, Administration and Marketing, ANA recently said “Despite the global slowdown

]]> By: Deb http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1903 Deb Sun, 26 Apr 2009 17:10:54 +0000 http://simpliflying.com/?p=935#comment-1903 Very interesting article indeed. It has provided me insights about what the Airlines are actually thinking in order to survive and sustain in this recessionary period as I am doing a project on Compatibility of Low Cost Carriers in India for my Dissertation. Indeed Branding plays an important role in the service sector and Customer Relationship Management has been a major focus area by the Airlines. Definitely customer concentrated actions would turn out to be profitable for the Airlines in the long run. Very interesting article indeed. It has provided me insights about what the Airlines are actually thinking in order to survive and sustain in this recessionary period as I am doing a project on Compatibility of Low Cost Carriers in India for my Dissertation. Indeed Branding plays an important role in the service sector and Customer Relationship Management has been a major focus area by the Airlines. Definitely customer concentrated actions would turn out to be profitable for the Airlines in the long run.

]]> By: Aamer Quraishi http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1059 Aamer Quraishi Wed, 18 Feb 2009 04:51:25 +0000 http://simpliflying.com/?p=935#comment-1059 Indian carriers have already started recovering and will come out very strong from this recession. Indian carriers have worked on high costs and have identified ways in reducing costs. Hence productivity has been much higher for them thus increasing efficiency. Once one gets used to deliver quality and work with quality in mind, that entity will always come out as a winner. To the benefit of the industry, fuel costs have nose dived along with taxes in various states controlled on aviation fuel and airport infrastructure increased thus expanding the scope of airline operations in India.This will only power the industry & energize sustained growth over a period of 2 years. Competition is to the spirit of its meaning in India when it comes to the commercial airline business. All Indian carriers expect to achieve the level of customer augmentation and delight which is necessary for any vibrant and consumer oriented economy. Customer is truly KING here. I personally don't feel a particular international carrier is a threat to the Indian carriers, but SQ has its own consumer oriented style which is hard to skip for any frequent traveller to go un noticed. LH / BA too is dominant but not due consumer delight in particular but due to its fantastic network in Europe. EK's expansion in India is commendable emerging as the largest international airline operating out of India along with a growing base of its frequent travellers. QR looks at following EK's foot steps in passenger delight, infact its a much better product inflight but not positioned adequately in the market place. Indian carriers have already started recovering and will come out very strong from this recession. Indian carriers have worked on high costs and have identified ways in reducing costs. Hence productivity has been much higher for them thus increasing efficiency. Once one gets used to deliver quality and work with quality in mind, that entity will always come out as a winner. To the benefit of the industry, fuel costs have nose dived along with taxes in various states controlled on aviation fuel and airport infrastructure increased thus expanding the scope of airline operations in India.This will only power the industry & energize sustained growth over a period of 2 years. Competition is to the spirit of its meaning in India when it comes to the commercial airline business. All Indian carriers expect to achieve the level of customer augmentation and delight which is necessary for any vibrant and consumer oriented economy. Customer is truly KING here.

I personally don’t feel a particular international carrier is a threat to the Indian carriers, but SQ has its own consumer oriented style which is hard to skip for any frequent traveller to go un noticed. LH / BA too is dominant but not due consumer delight in particular but due to its fantastic network in Europe. EK’s expansion in India is commendable emerging as the largest international airline operating out of India along with a growing base of its frequent travellers. QR looks at following EK’s foot steps in passenger delight, infact its a much better product inflight but not positioned adequately in the market place.

]]> By: Rohit Hangal http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1044 Rohit Hangal Tue, 17 Feb 2009 04:17:28 +0000 http://simpliflying.com/?p=935#comment-1044 Airlines in India are in a dilemma and can't figure out their next move..they were shouting themselves hoarse about a year back about the high cost of fuel they have to pay..which made them cancel future flights, postpone aircraft deliveries, hike fares ('fuel surcharge' being more than the actual fares), cut commissions to travel agents (even though 80 - 90% of tickets sold of all full service airlines were through Travel agents), forced oil companies (mostly owned by the Indian government) to take in deferred payments are now trying to create a new marketing buzz in form of cartelization of airfares and rationalizing of schedules amid falling fuel prices and traffic. If you go through the figures provided by the 'Ministry of Civil Aviation' in India, there is a drop of nearly 26% in air traffic across sectors in India, the aviation industry in India needs more than savvy marketing to foresee the future. The new Airports in India such as Bangalore and Hyderabad are adding to the cost of travel. Being located at a minimum distance of 40 kilometres from the City Centre (with not much low cost airport commute options) and the 'User Development Fee' enforced by Airports (as a cost of passengers using the services of the Airports) has made air travel less popular than before. India is not immune to the global slowdown and it is showing and aviation industry continues to bleed. When Richard Branson of Virgin said the "fastest way to be a millionaire is to start with a Billion pounds and get into the Airline business", he sure was not joking. Airlines in India are still not hedging fuel prices (they are anticipating a further fall of about 20%). Jet Airways and Kingfisher are world-class products, which should be a serious contender in the Airline business atleast in the Asia -Pacific region, but Airlines in India are in much 'trial and error' mode of managing their airline business. Though just very young compared to some International airlines who have a heritage of more than fifty years, there is an opportunity to learn from some of their mistakes and make some of our own 'original' 'Made in India' blunders! These are sure exiting times for Air travel industry in India, with the Indian government seriously contemplating increase of FDI into the Indian aviation industry, it is a question of 'who blinks first!’ Airlines in India are in a dilemma and can’t figure out their next move..they were shouting themselves hoarse about a year back about the high cost of fuel they have to pay..which made them cancel future flights, postpone aircraft deliveries, hike fares (‘fuel surcharge’ being more than the actual fares), cut commissions to travel agents (even though 80 – 90% of tickets sold of all full service airlines were through Travel agents), forced oil companies (mostly owned by the Indian government) to take in deferred payments are now trying to create a new marketing buzz in form of cartelization of airfares and rationalizing of schedules amid falling fuel prices and traffic. If you go through the figures provided by the ‘Ministry of Civil Aviation’ in India, there is a drop of nearly 26% in air traffic across sectors in India, the aviation industry in India needs more than savvy marketing to foresee the future.

The new Airports in India such as Bangalore and Hyderabad are adding to the cost of travel. Being located at a minimum distance of 40 kilometres from the City Centre (with not much low cost airport commute options) and the ‘User Development Fee’ enforced by Airports (as a cost of passengers using the services of the Airports) has made air travel less popular than before.

India is not immune to the global slowdown and it is showing and aviation industry continues to bleed. When Richard Branson of Virgin said the “fastest way to be a millionaire is to start with a Billion pounds and get into the Airline business”, he sure was not joking. Airlines in India are still not hedging fuel prices (they are anticipating a further fall of about 20%). Jet Airways and Kingfisher are world-class products, which should be a serious contender in the Airline business atleast in the Asia -Pacific region, but Airlines in India are in much ‘trial and error’ mode of managing their airline business. Though just very young compared to some International airlines who have a heritage of more than fifty years, there is an opportunity to learn from some of their mistakes and make some of our own ‘original’ ‘Made in India’ blunders!

These are sure exiting times for Air travel industry in India, with the Indian government seriously contemplating increase of FDI into the Indian aviation industry, it is a question of ‘who blinks first!’

]]> By: Pradeep Narasimha http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1043 Pradeep Narasimha Tue, 17 Feb 2009 04:07:53 +0000 http://simpliflying.com/?p=935#comment-1043 All the Airlines along with Ministry of Tourism in India has taken the age old adage' "Athiti Devo Bhava" pretty seriuosly. In fact all the airline carriers in India except for dropping Air fares based on revision/reduction of Air Fuel Charges. All other comforts within th aircraft remained the same. In fact business houses large, medium and small have circulated a diktat that no more of Business Class travel, no more of overnight stay and importantly some companies have gone to the extent of insisting that their Vice Chairman and other Directors should fly only by low cost/budget airlines. Amazingly in a country where there is no recession except fo an economic slow down; it's the belief of the business houses that the situation can worsen hence the perspective is cut cost, delay payments and importantly reduce man power by increasing the load on performers. In my opinion this will lead to performing managers non performance because of the load; leading to the growth of the company being dwarfed. Yes I agree with Shashank that the airlines customer interaction has not changed and in fact has improved leading to brand equity and empathy for airlines to return lot more stronger in the near future. All the Airlines along with Ministry of Tourism in India has taken the age old adage’ “Athiti Devo Bhava” pretty seriuosly. In fact all the airline carriers in India except for dropping Air fares based on revision/reduction of Air Fuel Charges. All other comforts within th aircraft remained the same.

In fact business houses large, medium and small have circulated a diktat that no more of Business Class travel, no more of overnight stay and importantly some companies have gone to the extent of insisting that their Vice Chairman and other Directors should fly only by low cost/budget airlines.

Amazingly in a country where there is no recession except fo an economic slow down; it’s the belief of the business houses that the situation can worsen hence the perspective is cut cost, delay payments and importantly reduce man power by increasing the load on performers. In my opinion this will lead to performing managers non performance because of the load; leading to the growth of the company being dwarfed.

Yes I agree with Shashank that the airlines customer interaction has not changed and in fact has improved leading to brand equity and empathy for airlines to return lot more stronger in the near future.

]]> By: Jonathan Yam http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1042 Jonathan Yam Tue, 17 Feb 2009 04:04:10 +0000 http://simpliflying.com/?p=935#comment-1042 In general, all the low budget airline in Asia will come out better than mega carrier. I can see the growth of commercial air line in India and Southeast asia, but I don't believe will make airline in India come out strong after the recession. As for air India, if they can merge a couple regional low budget airline, then they'll come out well in book value. In general, all the low budget airline in Asia will come out better than mega carrier. I can see the growth of commercial air line in India and Southeast asia, but I don’t believe will make airline in India come out strong after the recession. As for air India, if they can merge a couple regional low budget airline, then they’ll come out well in book value.

]]> By: Detlef Meyer http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1034 Detlef Meyer Sun, 15 Feb 2009 14:55:19 +0000 http://simpliflying.com/?p=935#comment-1034 I can't agree with this arguments at all. The fares are growing in India too. The grow in such manner that there are antitrust questions. The losses for all indian airlines are higher then expected. The goverment had to rule that all prices have shown including all taxes and fees to save customers right of information. Airlines shows their own fees in such a way that customers believed it were govermental taxes. All that don#t speak about a very proper relationship airline - customer. The cost cuts were nesecary to stay alive. They were right and just in time, but they show the problems. The time for growth is over. And that only in the last months. To end of 2009 we will see a cut in services, failing airlines and declining passenger numbers. May be nesecary to sell shares of airlines to the big players in the world airline industry. For India this will be at first hand the big arabian airlines with the big pockets (Etihad and Co). Recession - lets see the numbers at the end 2009. I think a 6% growth is very optimistic. Anyhow, also with a small growth India has a lot of trouble. I can’t agree with this arguments at all.
The fares are growing in India too. The grow in such manner that there are antitrust questions. The losses for all indian airlines are higher then expected. The goverment had to rule that all prices have shown including all taxes and fees to save customers right of information. Airlines shows their own fees in such a way that customers believed it were govermental taxes. All that don#t speak about a very proper relationship airline – customer. The cost cuts were nesecary to stay alive. They were right and just in time, but they show the problems. The time for growth is over. And that only in the last months. To end of 2009 we will see a cut in services, failing airlines and declining passenger numbers. May be nesecary to sell shares of airlines to the big players in the world airline industry. For India this will be at first hand the big arabian airlines with the big pockets (Etihad and Co).
Recession – lets see the numbers at the end 2009. I think a 6% growth is very optimistic. Anyhow, also with a small growth India has a lot of trouble.

]]> By: Clint White http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1025 Clint White Fri, 13 Feb 2009 07:42:24 +0000 http://simpliflying.com/?p=935#comment-1025 I think India has far less exposure to the banking crisis that is effecting the world. There are many reasons to think that India has some distinct advantages as the world economy recovers (eventually). These include: A young and still rapidly growing workforce that is also highly educated. As stable democratic government and an ability to adapt to changing times better that most countries, even China. India has had tremendous growth, but nothing like some of the other asian countries, just looking at history you realize it is India's time to shine. I think India has far less exposure to the banking crisis that is effecting the world. There are many reasons to think that India has some distinct advantages as the world economy recovers (eventually). These include: A young and still rapidly growing workforce that is also highly educated. As stable democratic government and an ability to adapt to changing times better that most countries, even China.

India has had tremendous growth, but nothing like some of the other asian countries, just looking at history you realize it is India’s time to shine.

]]> By: Shashank Nigam http://simpliflying.com/2009/three-reasons-airlines-in-india-will-come-out-strongest-from-the-recession/comment-page-1/#comment-1024 Shashank Nigam Fri, 13 Feb 2009 07:39:33 +0000 http://simpliflying.com/?p=935#comment-1024 You're right Giles. There might be some fatalities. But as you mentioned, air India has govt support. Kingfisher and Deccan have Mallya's deep pockets (much like Branson), Jet Airways is the market leader, and Indigo and spicejet have been runaway sucess stories on the LCC scene. That leaves GoAir and a couple of other smaller airlines which I think might fail. You’re right Giles. There might be some fatalities. But as you mentioned, air India has govt support. Kingfisher and Deccan have Mallya’s deep pockets (much like Branson), Jet Airways is the market leader, and Indigo and spicejet have been runaway sucess stories on the LCC scene.

That leaves GoAir and a couple of other smaller airlines which I think might fail.

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