PPRuNe Forums - View Single Post - Realtor all set to float new airline
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Old 10th Aug 2012, 18:35
  #28 (permalink)  
blackbirdsr72
 
Join Date: Mar 2012
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Even Iam surprised cyril......

See this is the problem if you rely on operational guys for your Aviation Project. This is why all the airlines in India except Indigo fails....
Iam a strong believer that you should have enough Aviation experience if you are going to be a promoter of an Airline. The Aviation business is something very different from other Industries. As far as Iam concerned Every penny saved is equal to every penny earned. See before the launch itself they have lost few crores in Advertisements, Sourcing of Aircrafts, ........ to Beaurocrats in order to avoid issues in changing business plans etc...

To become a sustainable Airline the business plan should be strong enough in a Price oriented market like India. No wonder ERJ 170 is a brilliant Aircraft for Regional Airlines. But the Routes they operate I definitely doubt whether it will be viable.... (surely it will according to CASK). If they are operating sectors of minimum 1FH then Iam happy, Anything less their P&L will never show Profits. As per my knowledge their 80% routes are between 0.75 FH- 0.90 Fh if its ERJ 170.

Regards
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