vadodara wrote:Fair enough, I dont. However, AI is constantly being bailed out by the govt. Not a sign of a healthy balance sheet.
I just posted in another thread how Air India is now asking for another 11,000 crore or $1.6 billion USD.
viewtopic.php?f=3&t=1383239I believe it is getting worse. I hope this Friday's 9W numbers are better than my estimates... I really hope much better as my estimates do not come up with a 60 day cease opperations, but are bleak on continuing opperations into 2019.
All indications are that the price war is intensifying (further suppressing yeild). If premium product is allowed into a price war or load factors drop too much due to a price disparity, then FSC suffer more.
To those in the CASK discussion:
CASK and RASK remain one of many methods for investors to quickly identify management issues. If a FSC carrier is not acheiving sufficient RASK premium, than investors correctly push for CASK improvements.
Sorry, but profitability matters. Every company needs a more complex set of internal benchmarks to improve the bottom line. Every industry has numbers pulished to help understand the quality of management. CASK, RASK, profit margin, debt to profit, Debt to income, profit margin, growth rate, staff turnover, yeild premium, and the trends are all important to investors, including the financial companies loaning money.
Jet, Vistara, and Air India seem to be unable to garner enough yeild premium. I'm not surprised, Indian consumers are famously (infamously?) frugal. Note:. As someone of Scottish descent, frugal is a compliment.
Air travel is a perishable product; if a plane takes off with an empty seat, it is never sold. J shouldn't be discounted too much. I am of the opinion that FSCs in India need fewer J seats, add Y+, and to reduce pitch in Y to incentivise customers to pay for comfort.
Two years into a major price war is a wee late to adapt...
Jet will have to adapt quickly. AI... I'll leave further discussion to the other thread.
Lightsaber