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Anyone wan’t to fund an airline? January 22, 2007

Posted by Vijay in Airlines, Business, India, Plans, Trends.

Please enlighten me with the logic here.

Ok so the Indian skies have opened up to private players. As is with any new business in India everyone made a beeline for it. While Jet and Sahara were comparitively older, there was a slew of new players who donned the “low cost” disguise. You have Deccan, Kingfisher, Spicejet, GoAir to name a few. In fact last year Indian companies placed the largest number of orders at the Paris Air Show.

So India is a great market, but can it handle so many players? Can these players really sustain or are we going to have a repeat of what happened in the USA where airlines started going into bankruptcy and had to cut back on everything?

Several Airline CEO’s have estimated this years losses to be between Rs. 2500-3000 Crores (courtesy Businessworld). Duh??? So when are they going to be making the money?

Talking about businesses and business plans, heres a cool cartoon strip. Courtesy of Wulffmorgenthaler. Its about how one would pitch the idea of a circus to the VCs.