Can airlines really be profitable if ALL THE AIRLINES:
– BUY aircrafts from the same manufacturers
– Land at the same airports (and pay the same charges)
– Use the same airport infra
– recruit from the same pool
– have a union that will decide the salaries and the bonus
– fly the same passengers?
Tough. really tough.
When do airlines make money? When they are being set up? Not sure.
Can they try differentiating between customers? Selling tickets in bulk – say they go to a L&T and say – we will give you a 10% discount if you fly a million miles a month, immaterial of class or flight timings? Tough. They may over fly Mum-Delhi and not fly Delhi-Srinagar at all. Moreover thanks to the net, such offers are difficult to give to just one customer.
If airlines can choose which airport to use (vow! and each city has 2-3 competing airports, it could help). Then the airports will be PAYING the airline – so that its shopping malls, restaurants, etc can earn some revenue.
If a city ties up with the airport company and woos corporates to open offices in those cities – airlines could benefit.
All these ideas may happen – not sure how soon. Till then they will keep going in and out of bankruptcy….
Of course Air India (is it now called Indian Airlines? I am confused) can never go into bankruptcy. It has always been in bankruptcy denial mode!
Left to themselves (and no state subsidy) the airlines will go the railroad business (in India they are protected by a monopoly and a poor population that cannot afford cars) or the shipping business.
Something is rotten about the transport business. It never makes money for the shareholder. However look at the entreprenurial optimism – money keeps flowing in – God help them.
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