Must we accept this is a failed sale?
vadodara wrote:Obviously, I am not in the know. However, it appears, that there is too much 'fuzzy' accounting that would be buyers feel the bidding for AI for its available slots may not be worth the trouble.
The employees, unless a flying knight show's up, might be the ultimate loosers.
What would be the final decision? Air India requires billions of USD subsidy to get by and that is money better spent on hospitals, roads, or airport infrastructure.
As long as Air India is a government business, there will be many snouts in the trough.
When does it end? When is Air India held accountable?
I personally think
dtw2hyd wrote:About comparing CASK of AI(FSC) with 6E(ULCC).
Are there any cases in the industry?
Emirates vs Fly Dubai
Singapore vs Scoot/Tiger
Malaysian vs Air Asia
Even FSCs with LCC level economy cabin service like
British Airways vs easyjet
US3 vs WN/B6/F9
There is no credibility in this argument.
Air India's CASK is below RASK. That is the discussion. The comparison with 6E is that:
1. Their CASK is far lower
2. Their RASK is far above CASK.
Sorry, but AI is doomed until RASK is higher than CASK. I've argued for years their operating expenses do not fully reflect actual operating expenses. CASK bears all.
And CASK is compared for FlyDubai and Emirates. High premium destinations get EK, low premium FlyDubai and very low premium all economy FlyDubai. Every market has specialized demands. If CASK is below RASK, then what customers are willing to pay is not the level of service being provided.
Low CASK allows growth. At this time, the fastest growing airlines out do the competition for CASK. Like it or not ULCC is the global growth trend as airlines have been proven an elastic market (more people fly as costs go down).
Does not Air India Express compete with Indigo? It would certainly be acceptable to break apart Air India Express' CASK from the other CASK... but oh, now why doesn't Air India report quarterly numbers?
In general, business only hide information if it is bad. When it is good they announce it. How much as Air India's CASK gone up with the rise in oil prices? How much has their RASK gone down (general trend in India is down 5% due to heightened competition).
I am saddened how re-audits of prior operating profits show they were in fact large operating losses! The entire reason AI doesn't report quarterly numbers is that the real rot would be exposed.
https://in.finance.yahoo.com/news/air-i ... 03891.html