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Showing posts from September, 2019

Airline Industry: What ails them?

"If we went into the funeral business, people would stop dying." — Martin Shugrue, onetime vice chairman of Pan Am “If a capitalist had been present at Kitty Hawk back in the early 1900s he should’ve shot Orville Wright; he would have saved his progeny money." - Warren Buffet At the behest of Jet Airways going defunct and the previous issues of Kingfisher and money guzzling saga of Air India, I decided to pen down my thoughts on Airline industry in India and what ails them.  Source: ( Link ) If we take a look at the chart, we come to know that the airline traffic has been on consistent rise as per DGCA data. Further Revenue passenger kilometer (RPK) & Available seat kilometer (ASK) rose persistently and hence the load factor improved from 70% to 83%. Source: ( Link ) To understand RPK & ASK, we will take an example. Say an aircraft flies from Delhi to Mumbai which is ~1500 km. The total seats are 100. However the number of passenger