| View previous topic :: View next topic |
| Author |
Message |
747-237
Member
Joined: 11 Jun 2007
Posts: 11353
Location: Gordon Gekko's Boardroom
|
 Posted: Tue Nov 22, 2011 12:48 am Post subject: GoAir slips into red, eyes smaller cities for growth |
 |
|
http://www.hindustantimes.com/News-Feed/SectorsAviation/GoAir-slips-into-red-eyes-smaller-cities-for-growth/Article1-772228.aspx
GoAir slips into red, eyes smaller cities for growth
November 21, 2011
Wadia group-promoted budget carrier GoAir, which has slipped into the red in the second quarter due to high fuel costs and a falling rupee, is looking at a number of options to return to profitablity in the third quarter.
The airline plans to go ahead with a new strategy, under which it will not sell tickets below cost price, induct 3 new Airbus A320s and start new operations in tier 2 and tier 3 cities.
“We had some weak result in the second quarter but we feel confident that we might get a good result in the third quarter,” Georgio De Roni, CEO, GoAir, told Hindustan Times on Monday. “Fuel price has gone up by more than 40% but fares have not.”
“We must deliver profitability so we need to revive some approach,” he added.
The company is also mulling whether to increase fares. De Roni indicated that the airline could increase fares by about 20% in the third quarter, as it was “impossible to sell tickets below the cost of production.”
The company that had placed an order of 20 A320s would be taking delivery of 3 of those in 2012. “We had placed an order for 20 A 320s in 2007 of which we will get delivery of three of the planes in 2012, three in 2014 and four in 2015,” he said.
The airline also plans to deploy new planes in newer destinations, especially in tier 2 and tier 3 cities.
_________________
11000 posts (and counting) on Airliners-India.
 |
|
| Back to top |
|
 |
Nimish
Member
Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
|
| Posted: Tue Nov 22, 2011 11:20 am Post subject: Re: GoAir slips into red, eyes smaller cities for growth |
|
|
| 747-237 wrote: | The airline plans to go ahead with a new strategy, under which it will not sell tickets below cost price, induct 3 new Airbus A320s and start new operations in tier 2 and tier 3 cities.
|
Is this a sustainable strategy - I mean with the capacity already very high - unless they're looking at some innovative routes without much competition or anything else unique to pull pax over, what chance do they have of getting loads without market based pricing?
I realize they (as other airlines) are caught between a rock and a hard place, can't increase fares unilaterally, can't make money at the current fares...
_________________
We miss you Nalini! |
|
| Back to top |
|
|
ameya
Member
Joined: 09 May 2007
Posts: 3671
Location: Pune,Maharashtra
|
| Posted: Tue Nov 22, 2011 12:11 pm Post subject: Re: GoAir slips into red, eyes smaller cities for growth |
|
|
| Nimish wrote: | | 747-237 wrote: | The airline plans to go ahead with a new strategy, under which it will not sell tickets below cost price, induct 3 new Airbus A320s and start new operations in tier 2 and tier 3 cities.
|
Is this a sustainable strategy - I mean with the capacity already very high - unless they're looking at some innovative routes without much competition or anything else unique to pull pax over, what chance do they have of getting loads without market based pricing?
I realize they (as other airlines) are caught between a rock and a hard place, can't increase fares unilaterally, can't make money at the current fares... |
Probably the Only cartel in the world which loses money . . . |
|
| Back to top |
|
|
Nimish
Member
Joined: 16 Dec 2006
Posts: 9757
Location: Bangalore, India
|
| Posted: Tue Nov 22, 2011 12:45 pm Post subject: Re: GoAir slips into red, eyes smaller cities for growth |
|
|
| ameya wrote: | | Probably the Only cartel in the world which loses money . . . |
   - never thought of it that way - but sadly true...
_________________
We miss you Nalini! |
|
| Back to top |
|
|
HAWK21M
Member
Joined: 19 Dec 2006
Posts: 8132
Location: Mumbai, INDIA
|
| Posted: Wed Nov 23, 2011 1:54 pm Post subject: |
|
|
Aviation is a tough business.....GOI needs to help out with making this business out here worth getting into by reducing high charges which Airlines pay.
_________________
Think of the Brighter side !!! |
|
| Back to top |
|
|
ameya
Member
Joined: 09 May 2007
Posts: 3671
Location: Pune,Maharashtra
|
| Posted: Sat Dec 10, 2011 8:20 am Post subject: |
|
|
| Looks like Go is launching new flights as well from BOM and connecting it to PAT/IXR with additional flights on AMD-BOM-AMD sector. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
