Showing posts with label airlines. Show all posts
Showing posts with label airlines. Show all posts

Tuesday, September 8, 2009

The problem with airlines...

Pilots declare strike. Management threatens. Pilots go on mass sick leave. Management sends doctors to their homes. Had it not inconvenienced so many travelers, this was just the kind of comic relief to lighten up these gloomy days of recession.

Today's strike aside, most airlines worldwide are headed for a disaster. I think the problem is lack of creativity. Airlines is a boring industry in every aspect. They are highly capital intensive and are subject to several regulations due to safety concerns. Consequently, they are "boxed" within a certain framework with very little room for creativity. Take the safety instructions by the crew before takeoff for example. (It is only Southwest that has managed to break out and the results are there to see.)

Even the names are boring. Jet Airways, Spice Jet, Indigo, Go Air. One would be pardoned for concluding that the law requires airlines to include either Jet or Go in their names. Even worldwide, the names are surprisingly drab. Except for Virgin which has gone to the other extreme, and following in its footsteps, our own Kingfisher.

Contrast it with how IT firms are named. Apple, Sun, Oracle, Google, Adobe etc. Except for Microsoft, no one felt the need to announce what business they are in, let alone where they are from. Whereas for airlines the preferred choice is the nationality of the airline followed by "airlines".

The only way the airlines can come out of their perpetual slump is by hiring a software CEO.

Tuesday, August 4, 2009

Indian Airlines

Well, I will claim to have successfully predicted that the proposed airline strike will invoke a sharp reaction from the government. If I got it right, I am sure it was plain obvious to everyone. As it happened, the airlines themselves were not united, and the strike has been called off.

What I like about such failed attempts is that they succeed exceedingly well in making the point. With losses mounting and what not, the last thing airlines need is the hassle of refunding fares to passengers. They just wanted to prick Praful Patel's butt and make him lose sleep on a few nights. Mission superbly accomplished.

What now? Mr. Patel says no bailout for private airlines. And that's fair enough. I am no expert on this industry, but Spice recently posted a profit and thats good enough for me. It indicates, if managed well, there is scope for improvement. On the other hand though, globally the airline industry is a disaster. But still there is a Singapore here and a Southwest there that defies the trend year after year after year. Airline CEOs need to roll up their sleeves and get creative about fixing the issues. Laying off employees and asking for price cuts on jet fuel is lazy management - these are the two biggest expenses, and if u reduce expenses, u make profit right? Wrong! The industry needs some fresh bottom-up thinking. Although not as fresh as Capt Gopinath's I guess, who is blamed by some for the mess we are in:)

Friday, July 31, 2009

Airline Strike

Private Airlines have decided to suspend operations on August 18 to protest jet fuel prices and surcharges. Their demands may be legitimate but going on a strike hardly feels like the right approach. Jet and Kingfisher have confirmed this, but low-cost airlines havent yet said anything. It is interesting to see if there will be any government intereference in this matter.

One might argue that these are private corporations, and the government should not interfere with their decision. Yet, airlines have become such an integral part of our economy that the 1-day suspension is definitely bound to have an impact on the economy. In addition, the legalities of airline operators getting together to suspend operations is doubtful. In most western countries, such a move would be termed "collusion" and attract the attention of trade regulators.

When calling to privatize PSUs, we must remember that the legal and regulatory system needs to robust enough to ensure that the nation is not at the mercy of capitalists.

Tuesday, July 21, 2009

Dr. Kalam frisked. So what?

Why is frisking perceived as an insult? Isnt it a clearly stated policy of airlines and airports to check bags and passengers before boarding? And we all go through this rigmarole everytime we have to take a flight.

Of course, this frustrates us to no end, not to mention the delays involved. If you have to take an 8AM flight, you rouse yourself out of sleep at 4AM, get ready by 5, travel 30km to the airport (thankfully there's no traffic) and reach by 6, and join a line with 15 guys waiting to get into the airport. More people waiting to check in their bags, and even more at the security check. At times, a train journey feels infinitely more comfortable. We have learnt to grin and bear it. The VIPs, I assume, dont go thru any of this.

The only inconvenience they have to put up with is a security check, which hardly takes 30 seconds. And they have a problem with that! Make no mistake, they are not of a superior race. We have enough civilians that have contributed to the economy as much or more than our politicians.

We also know how fragile the security situation is. Take the delhi airport shooting, for example. If anything, they should lead by example, and willingly follow the same security process as we do. That should send a strong message to the people. Unfortunately, we are only good at sending strong messages - we are yet to learn how to follow it up with actions.