Girish Nair’s Post

With the merger of Air India and Vistara, the Indian sky is bound towards a duopoly. Air India Ex-Air Asia merger may not create a serious challenge, at least in the near term. The revival of Jet Airways and Go First doesn't seem to be happening anytime soon. SpiceJet is not in a good shape. Akasa Air provides the little hope there is for flyers. In this scenario, is their room in the skies for more big airlines? Read my piece: https://lnkd.in/eyM9678U

Episode 10 of Legacy Lessons: Jet Airways, founded in 1992, rapidly became a leading player in India's aviation sector, renowned for its excellent service and expansive network. However, despite its initial success and peak achievements, the airline faced significant challenges, including high operational costs, debt accumulation, and intense competition from low-cost carriers. These factors led to its suspension of operations in 2019. The attempts at revival by new investors highlight the ongoing efforts to bring this iconic airline back to the skies. Jet Airways' journey offers valuable lessons in the importance of sustainable growth and prudent financial management. It's a reminder to balance ambition with financial stability in the pursuit of business excellence. #JetAirways #Aviation #BusinessLessons #SustainableGrowth #FinancialManagement #legacylesson #secpvtltd

“Air India Limited’s decision to order 100 additional Airbus planes is set to boost the competitiveness of its partnership with Singapore Airlines (SIA) in India, one of the world’s fastest-growing aviation markets, analysts say. The deal, announced on Monday, follows the 470 Airbus and Boeing jets that Air India ordered last year under the stewardship of the Tata Group, which acquired the carrier from the Indian government in January 2022. The latest order – comprising 10 widebody A350 jets and 90 narrowbody A320-family aircraft – is in line with Air India’s plans to improve its market position after decades of state control, according to analysts. It came after last month’s merger between Air India and Vistara - TATA SIA Airlines Ltd., under which the Singapore carrier has a 25.1 per cent stake in the merged entity. Mayur Patel, Asia head at OAG Aviation, a global travel data provider, said the new order “allows them [Air India] to scale some of its domestic capacity at airports such as Noida International Airport and Navi Mumbai International Airport , along with providing further growth for domestic and Southeast Asia and Middle East routes.” He was referring to the Noida airport near Delhi and the Navi Mumbai airport, both of which are under development. Air India’s partnership with SIA has the potential to repeat the success of Cathay Pacific’s partnership with Dragonair, Patel said. SIA would also stand to gain because of more flight connections via India to faraway cities such as Manchester, he added. Referring to Air India’s order, Shukor Yusof, founder and analyst at Malaysia-based Endau Analytics, said: “There’s clearly a desire to exploit the current growth in India’s air travel industry and to make Air India great again.” However, he noted that Air India’s new aircraft would not be delivered until after 2030 and IndiGo (InterGlobe Aviation Ltd) would retain its market leadership in the near term due partly to its lower cost of operations.”

Strengthening Indian Airlines for Long-Haul International Connectivity is key as per the Economic Survey 2024 and the below measures are being taken. Traffic Leakage: - A large proportion of Indian long-haul international traffic currently travels through hubs in the Middle East and Southeast Asia, causing a leak. Government Reluctance: - The government has been hesitant to grant additional flight rights to foreign carriers, including Dubai. Air India Limited Expansion:    - Increased flight capacity to the U.S. and Europe.  - Ordered 470 aircraft, including 70 widebody planes for non-stop long-haul routes. IndiGo (InterGlobe Aviation Ltd) Long-Haul Plans:    - Announced a firm order for 30 twin-aisle Airbus A350s.  - Purchase rights for an additional 70 A350s. Airline Viability: - Need to improve the efficiency and viability of airlines highlighted due to the insolvency of Go First and Jet Airways in the past five years.

The era of Jet Airways, a legendary airline in Indian aviation, came to a sudden close on April 17, 2019, with its final flight from Amritsar to Mumbai, flight 9W2502. Jet Airways' 26 years of service were abruptly cut short due to financial turmoil, impacting over 20,000 employees, leaving loyal customers stranded, and tarnishing its once prestigious legacy. The airline's downfall can be attributed to key financial mistakes: 1️⃣ Overleveraged Acquisition: The acquisition of Air Sahara in 2006 for $500M resulted in substantial losses and overwhelming debt. 2️⃣ Failure to Adapt: Neglecting the emergence of low-cost carriers and the necessary adjustments to business models. 3️⃣ Inefficient Cost Management: Struggling with high operating expenses and ineffective resource allocation. 4️⃣ Inadequate Risk Management: Exposing the airline to fuel price fluctuations and currency exchange risks. From Jet Airways' demise, there are valuable lessons for business leaders: 1️⃣ Strategic Acquisitions: Conduct thorough financial evaluations before making significant purchases. 2️⃣ Adaptability: Remain flexible and responsive to evolving market dynamics. 3️⃣ Financial Discipline: Emphasize effective cost control and risk management strategies. What insights can businesses derive from the Jet Airways saga? Share your perspectives on the lessons learned. #JetAirways #Aviation #FinancialLessons #BusinessStrategy #Leadership #RiskManagement #Adaptability #FinancialDiscipline

In a recent interview with S+B, Air India CEO Campbell Wilson gives an overview of the transformational journey that led to the airline’s reinvention under the Tata Group. He further highlights how strategic investments in fleet expansion, technology upgrades and comprehensive training programmes have helped drive Air India’s reinvention. The integration of Tata’s airline holdings and a commitment to sustainable aviation fuel underscore significant strides toward a modern yet sustainable and competitive future. Read the full article here to learn more about the strategic moves shaping Air India’s revival: https://bit.ly/46u3amz   #AirIndia #AviationTransformation #SustainableAviation #TogetherWeFuture   Sanjeev Krishan | Vaidison Krishnamurty | Vishnupriya Sengupta

In Article 196, I talk about how Air India has grown its route network and increased its fleet size since its privatisation. The airline aims to harness the demand available in various long-haul markets as more widebody aircraft are being delivered.

The Hindi saying "जो दूसरों के लिए गड्ढा खोदते हैं, वे खुद उसमें गिरते हैं" aptly reflects how certain actions can backfire. Naresh Goyal, the founder of Jet Airways, reportedly opposed the privatization of Air India in the late 1990s by leveraging political connections. His efforts allegedly included lobbying against the Tatas and Singapore Airlines consortium, preventing their acquisition of a 40% stake in Air India. This move was seen as a way to eliminate potential competition and secure Jet Airways' dominance in Indian aviation. Ironically, despite these tactics, Jet Airways itself faced severe financial difficulties in subsequent years. Mismanagement, excessive debt, competition from low-cost carriers, rising fuel costs, and failure to adapt to changing market dynamics led to its downfall. In April 2019, Jet Airways suspended all operations, unable to secure funding or meet operational expenses. The fate of Jet Airways serves as a reminder that short-term strategies to undermine competitors can sometimes lead to one's own undoing, as broader challenges and internal vulnerabilities remain unaddressed. pic from #Skyhigh theuntold story of Indigo

Many airlines are struggling with manpower and supply chain constraints. As shared by Sobie Aviation in an interview, an example of one such airline seemingly more affected than the rest, with a string recent incidents and announced reducing flights in the next 3 months due to operational difficulties – delayed aircraft deliveries, lack of parts, lack of MRO manpower. https://lnkd.in/g5hxVgez #fwdmotion #innovate #aviation #aerospace #managementconsulting #recruit Also check out our previous insight article here: https://lnkd.in/gQf9HMiH https://lnkd.in/gRaMgBS4

#Vietjet Aviation Joint Stock Company reported robust business performance for the first nine months of 2024. During this period, Vietjet transported over 19.6 million passengers across 104,000 flights, reflecting year-over-year increases of more than 6% and 2%, respectively. The airline served over 2.54 million international passengers, marking a 9.1% year-over-year growth. https://lnkd.in/gJ5YKU3e