why indian aviation industry making losses?

Question

how can indian airline overcome this problem?

Answer 1

Well they have to get "good mangement practices", -- which covers a lot of "ground". I'm not farmiliar with their system or practices. But a number of things have to occour for any business to make money,-- rather than loose it!!

Top level managemant: guard against waste, "Internal graft", amount of money top officils are paid, "pilferage", -and purchase of un-economical or un-needed equipment and other materials!

Employees: needed people only (not a lot of "dead wood"), - Well qualified people that do their work right (so there is not needless money expended in repetition).

Aircraft: reliable equipment and airplanes only as needed, - (it wastes money for a 747 to haul 20 people to the "next place" - when it could be done by a smaller aircraft)! Only maintaining enough pilots to properly and safely perform the normal amount of flights daily (plus a couple crews on standby in case of sickness or "overload"). Capable and qualified pilots and crews (replacing crashed airplanes costs lots of money)- guarding against injured or killed passengers, (lawsuits are expensive too).

Routes: you have to actulally be going where peole want to go (somewhere near when they want to go). Also you have to be able to provide the required services at a price that you can make money. You can't overprice the flights very much either, as you will then be running with empty seats, and that wastes money (as it costs almost same to fly half full as totally full!)

There are a lot of failed airlines in the US that they could contact and find out "what not to do!"

Answer 2

Is isnt just the Indian Aviation Industry, its the Industry worldwide that is losing money, just look at the US Airlines like United, delta and others or Japans JAL, for evidence of that. The Industry is one of the most highly geared businesses in the world and just something like a rise in fuel prices can turn a profit making airline into a loss maker in no time at all if the correct fuel hedging techniques are not undertaken. It has more to do with cost control than management practices.

Answer 3

1. Too many startup airlines have come up increasing competition
2. Every airline is slashing fares to attract customers
3. No. of trained employees especially pilots is limited and all the companies are expanding rapidly.
4. Cost of ATF (Aviation Turbine Fuel) in India is very high due to huge taxes
5. Public Sector Airlines keep making losses due to excessive Government interference
6. Airports in India are in pathetic conditions. In fact it was recently reported that only 5 out of 126 airports in India have a valid licence

Answer 4

a very difficult question to answer. the main reason is airlines spending a lot on newer fleets better products and increased fuel cost increase expenses. however tickets priced low due to competition gets them lesser money than they invest. this is just a over-view. there are a lot of information into it.

Answer 5

Very few airlines in the world are profitable now a days.

The biggest of them are non existent.

To list few
Eastern.
TWA
Pan Am
Ozark
............
........
...
This is a direct result of low cost, no frenge, airlines poping up in nich markets.

The inovation is the key to profitability. Farsightedness, and taking calculated risks are the few others........

Answer 6

particular he can. He has large un-trapped skills left interior of him. And for that remember there are various many skills like Laluji who given an probability and existence like time can do miracle

Answer 7

It is the Currie.