Its not a secret that makes a business profitable, its the basics..!!

Posted By : Kishore B.S

Friends,

Any business which looses focus or deviates from its ultimate goal always pays price for it, with airline industry making all the news and one after the other player announcing that they are making so many crores of losses it looks like the business model or airline industry is not a place to be invested in.

 

But out of Six major airline companies in Indian Aviation industry only company which is sticking on to its basics is the one who is making profits. Indigo Airlines is the only company in India who is afloat and who’s still able to fly its business better than all other players in the market.

The following are the extent of loss that each of the player has reported recently.

Kingfisher’s current losses is around Rs 7,000-odd crores.

Air India is also heavily loss-making and suffering under high-debt levels. figures will be provided as and when it will be available.

Jet posted a loss of Rs 101 crores for the quarter that ended in December.

SpiceJet’s accumulated losses stand at Rs 1077.81 crore at the end of December.

GoAir, the smallest of the above all a low-fare carrier posted losses to the tune of INR655 million.

Indigo is the only company who has announced 6.5 billion rupees  profits(last fiscal) and more or less similar figures of profits are expected even at the end of this financial year (Sources say that)

The Mantra behind Indigo’s healthy business is:

1) Indigo has done everything right which Kingfisher has done wrong

2) Industry watchers say there is disciplined business plan

3) Indigo offers one class of no-frills service on a single type of plane, the same strategy pioneered by U.S.-based Southwest Airlines.

Like one of the ad says keep it simple and silly Indigo keeps its business by keeping it self simple and silly.

(Inputs: Mr. Kishore BS, Stock Market Institute, Bangalore)

Cheers!!

Team SMI

www.stockmarketinstitute.org

2 Comments

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