India’s Airline Problem
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- Опубликовано: 21 авг 2020
- Why do airlines struggle so much to be profitable in India?
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You guys asked for it - here's another analysis video! Hope you enjoy it❤️ Don't forget to download Dashlane for free: dashlane.com/nonstopdan
Hi Dan...
Great video, Dan!
Hi Dan! 15 year old fan from India 🇮🇳. This problem is partly due to an absurd national financial crisis, where owners of airlines are unavailable to pay certain prices and loans set by the government.
Loving these educational videos Dan :)
Love the video!
I wish there was a subject studying airlines at school. I would love it.
Not at school. But some universities run degrees on transport economics/planning which may include stuff on aviation depending on the course
Edit I think both the geography and economics causes I did at school included stuff about the aviation industry.
There are colleges and universities which offer airline management studies and business degrees.
I would have loved it, too!!
SAME
Omg yesssss
I’m American and I’ve been to India 3 times. Always love their insanely low air fares, they are so low you start to worry how they offer seats so cheap. Indigo is a modern well run airline, air India is scary!
as an Indian avgeek, the low fares concern me as well and the price sensitive market of India made the 5-star airline Kingfisher go bankrupt.
For you. For Indians a 5000 rupee fare is not that cheap....
Parth Mishra that is a very valid point sir!
@@parthmishra4173 Anything from 2000 to 4000 is cheap for Indians. Above 4000 rs Its Costly
Air India is hated by Indians too 🤣🤣😂😂
Another reason for low profitability is the Indian Railways. It has vast operational network across India with affordable prices unless u opt for premium trains or class. Many of the middle class people opt for rail journey instead of flight due to huge difference in travel cost.
@Li'l Squeak Yep. I paid 2700 Rs for 3rd AC Class in Duronto from Delhi to Pune. The flight Cost nearly the same nearly 3000 Rs..
Railways cannot compete with airlines when it comes to the time factor. The average top speed of a train in India is 80 kmph. Fact is commercial aviation has seen a boom in business with ordinary people travelling by air.
@Li'l Squeak i completely agree with you. I have also mentioned that price will be same if you opt for premium trains or classes. However, vast population in middle income group and many people use to travel in economic fare only in trains
@@rext8949 lol are you talking about American railways
Because in India some trains runs at a speed of 160kmph
@@yashsinghrathore9615 the trains are capable of that speed but due to track conditions in India the average speed for the journey is maintained at a lower speed.
Being half owned by Singapore Airlines, I think Vistara will be a success in India.
SIA have been profitable for 43 years in a row until COVID-19 so I expect Vistara to succeed
Not to forget, it's Tatas fm India who r behind Vistara and they were the first to start airlines in the country. It's a very respectable business conglomerate, who might be one big reason for the success of this airlines.
i wouldnt be surprised if they didnt succeed because vistara's prices are much more expensive the other airlines and like dan said low cost carriers are preferred in india
Dont hold your breath though.. look at virgin australia
Nathanael Halim SQ owns only 20% of Virgin Australia, where as SQ owns 49% of Vistara......
UDAN: "Ude Desh ka Aam Nagarik" basically means "Every Common Man will Fly"
Sounds like AirAsia's slogan too: *Now everybody can fly* . Greta Thunburg might be like: _How dare you?_
@@lzh4950 🤣
I am Indian and i am impressed with amount of information you have I don't have enough financial independence to support you on patreon but i will promote your channel personally to my friends i used to do that for polymatter , wendover production , Caspian report and many more you are also in my list
I used to fly in Jet Airways from Paris to Mumbai.... I miss them... They were amazing... Better than other French carriers
Indeed! I too have done the Mumbai-Paris route on Jet airways. It's one of the best international flights I've had.
Jet airways is back
Dan this case study is brilliant ! You've perfectly exposed how the Indian Aviation Ministry has potential to do alot more for its domestic carriers . Also another factor to consider is that air fares drastically rise up during season time ( sometimes to an extent where flying international is more feasible ) which brings in the affordability factor for the average consumer ( in comparison to other modes such Rail and Roadways ) Looking forward to the Jet Airways video 💯
Here's a fun fact: Most of the Cabin Crew from collapsed Jet, are now part of Qatar Airways Cabin Crew
True lol
They have been fired now due to covid
@Li'l Squeak as a former qatar crew, they werent nice to say the least
Do Thomas Cook. I loved working for them and it’s shocking a profitable airline had to shutdown due to the brand as a whole 🥺🥺. I was on duty, 3am, when the news broke it was awful.
Gosh that's horrible! I'll look into the video potential🙏
As some one from Asia it seemed unfathomable that there are/were airlines that didn't target business customers while also not being budget, or travel agencies operating their own airlines too (because I thought their existence was already under threat by travellers cutting them out as the middleman by booking travel-related services online directly) e.g. TUI, Condor, as it wouldn't have seemed economically viable
I learned a lot from this
I feel like "Smaller communities" undersells the lack of infrastructure that you have at these airports. The airport closest to my extended family is STV, which was in the government scheme to improve access.
We flew into this airport having spent some time in Goa in 2016, which was the last time I went to India. Despite being a city of ~5m people the airport terminal was smaller than the train station in my university city of ~80k people, which would as many passengers in an hour as STV would have in a day!
I know right?! Surat Airport is also by far the closest airport to my family in India, but due to lack of availability and expensive flights we have to usually bear the long drive to Mumbai or Ahmedabad to catch flights, especially international ones. How can a city with over 5 million people have less than four int'l and a few dozen domestic flights a week? Where I live, in New Zealand (total population: barely 5 million), my home city of under 500,000 has at least 5-8 international flights and over 50 domestic flights daily, despite being closed from 12am-4am.
Any impact that Indian railways has on passenger volume? Even the growth of airlines has barely dented rail passenger volume
I love your documentary style videos. Having been with you on this RUclips journey since the early days of Dantorp, it’s a pleasure to watch your channel grow and the quality of your videos increasing. You really have hit professional level. Much love to you from a locked down England!
I feel in many ways that India's aviation industry mirrors that of Mexico.
Here in Mexico we have only 4 major airlines (Aeromexico, Volaris, VivaAerobus and Interjet). Corruption is also a key factor here, as Mexicana Airlines - the only other full service airline besides AMX went bankrupt several years ago. Most traffic in Mexico is also VFR, just like in India. Many airports and cities with potential throughout Mexico are also underserved, or have been nearly forgotten about, such as Cuernavaca near MEX, and Guaymas in the North of the country.
Similar to Mumbai in India, Mexico City is one of the largest metropolitan areas in the world, yet only has one airport operating at capacity. Nearly all of Mexico's transatlantic traffic comes on foreign airlines. AeroMexico only serves a handful of European cities. Many European airlines dominate the long haul routes from airports in Mexico such as Cancun, Puerto Vallarta and Los Cabos. This is similar how European airlines such as British or Lufthansa dominate in India, because of the perception of Air India by the population, and their lack of international services.
Ultimately, I feel several other countries are faced with similar situations as India, such as in Central America and South America (very few airlines, high ticket prices, government corruption, etc). I feel this video was very helpful understanding the airline industry a little bit more deep down so thank you very much for sharing!
This was so insightful! Thank you.
S.S Iyer For sure!
They’re both developing countries. India is investing so much in infrastructure and I’m sure Mexico is too. These prices are pretty high for local Indians. This guy just doesn’t account for the fact that it’s not a rich, developed country.
I love these short docu-series Dan! Please keep them coming.
Regards from South Africa! 🇿🇦
Really appreciate these docu style videos Dan. Comprehensive, not overly technical and well spoken. interesting and educational to us av geeks. Well done and more please.
Got to know about my country aviation state from a foreign guy! Thank you dan
Meanwhile their Air network software is being done in bengaluru
@@dcmhsotaeh 😎
Same
6:10 the staff have a better headset than I do, they literally have a 100 dollar hyper x stinger
The biggest problem is that most airports are far aware from the cities, with poor connectivity.
So sometimes it takes more time to get to the airport than the actual flight times.
While the railway in India, most cities are build around the station
Nice research Dan. It’s also down to the four P’s of marketing; product, price, promotion & place. Also the research you presented play a massive role. Nice video Dan. Thanks for taking your time researching this. 👍
Love this kind of content, gives your channel something extra. I understand it would be difficult to take requests, but would love to see a video about asia's first and oldest commercial airline - philippine airlines.
The video is very informative and it's true that Mumbai airport lacks as compared to other.
I'm from New Delhi and Live close to the airport and all I see are Indigo, air india and spicejet (all low cost airlines) and sometime vistara. It shows that there are barely any premium airlines arriving here.
@@God-mv4zb yeah you're right. And also because Mumbai has very less space to have more than 1 airport.
Worldwide legacy carriers are struggling. It's the low cost carriers which are doing good business
@@rext8949 fr fr. Facts! And also I was watching lately news and got to know there will be a lotta new airports building around in India including a new one in Mumbai. 🙃
I really love these educational aviation videos... Maybe time for a spinoff channel when this covid mess is done !! Well done Dan !! Love your work!
Nice Info Dan....Well done...
Really like your video. Hope you make video of more struggling airlines in near future.
Dan just saw that you'll be making A video on Jet Airways!!And I'm dying to watch it as it was my Favorite Airline!!!!
Jet Airways is your..favourite?
Favorite indian airline
@@sambsstt Jet Airways is a big deal in India bud.
@@taushsidhu9335 Well, that doesn't mean it's a good airline, and it's bankrupt now, so...
@@sambsstt I agree , Corruption on the top levels of management was the reason for its downfall . Yet we all crave that nostalgic feeling of good times , you know ...
Just rediscovered your channel with these educational video, they are definitely quality ! I would love to see more of these
Been a subscriber for the past 7 years and being from India I learnt a lot about the current situation. Nice job. Can you perhaps make a video on how you edit your videos its really good !!
This is awesome Dan!! Please keep making more such videos.. you nailed it!! 🤩
HI!! awesome video nonstop dan.. Im a longtime fan of your channel, and really love your background!! I am an Indian and i thought this video was very insightful and your research is just amazing. One thing I think is also a source of much difficulty for the Indian airline industry that you didn't mention is the extensive railway network in India. Many Indians are very much adapted to travelling by rail. Though this is a cheap service, it is not very time efficient. I hope that things will change! Love your channel and hope to see many more videos like this!
I love this new video format. Since you can’t travel, you found a way of making fun video without flying. Keep up the great work.
I really used to wonder why Indian airlines struggle,but now I got the answer very informational
Loved this video, coming from a aviation enthusiast - was really interested in all the information :)
Truly a great analysis of Indian Carriers, thank you Dan for sharing this. Awaiting for your next video eagerly.
Amazing video #NonstopDan
Indeed loved your vast research on Indian Aviation and their Profitability. Hyper cost sensitive market, Dominating LCC's, Under developed airport infrastructure and one of the highest ATF fuel tax by the government prevents Indian Aviation from profiting and expanding.
This topic is very intreresting, Dan! I hope there is more educational avation videos in the near future.
Well researched video Dan. Great job !
Wow this was a literal dissertation. Well done!
Hello Dan, I have recently noticed you produced the most videos per month, good job and very good videos
Answer : Indian Railways
But India is not known for its railway. They are nice these days but nothing special about them.
@@sarangtambe3585
It doesn't matter.
It's just cheaper than air travel.
No need to be special
Sounds like a reversal of the situation in the USA?
@@lzh4950 Yes
Loving these informative videos (etihad and this) keep them coming 👌🙏🏼 even when u can start flying as usual I think everyone would like for u to keep making them if possible
Very enjoyable Dan. And a great summary. I'd love to know why they need the follow-me vehicles for airlines that are incumbent in the country.
Very interesting video, Dan. I learned something!
@NonstopDan Glad u lived in Hyd! Hope u had a great time here.
Brilliant stuff Dan...really enjoyed it mate...often wondered why Indian Aviation is such a mess in such a large nation !! Thanks mate and looking forward to the episode !! Thank You !!
Ummm.. loved it! The way u presented👌. Waiting for nxt such videos.. keep coming🛫.. Stay safe💫💝
It's amazing how much work you must put in making these videoes. Thumbs up.
Dan, this video is amazing! very educational! I bet it took a long time to create this video. Thank you!
This is so crazy I travelled to India last year and I remember flying indigo and spice jet I’ll leave my options to myself but if you want to hear them lmk
Excellent review. Thanks for sharing.
Dear Dan,
You also have to factor in buying capability of passengers. People have get paid meager salaries making it impossible for them to purchase airline tickets from full service carriers and forcing budget airlines to drop prices. This is also a reason for people preferring trains in India because they are cheaper.
Also the airports in majority of places are way far from city centres and lack quick and affordable connectivity to city. For example it takes more time to reach my home from BLR airport than it takes to fly in from Delhi
This is very informative.I look forward to the next video
Very well researched and informative. This ought to have been part of an MBA case study !
Thanks Dan. Great video. I love these. Keep up the great work. 👍
Amazing video of Air India. Makes me wanna visit and explore rhe air industries in India. Sounds fun and exciting; makes me also wanna be a flight attendant in the coming yrs.
I live in bombay and now in HK and see spicejet 737 indigo a 320 and air india 787 dreamliner here in HK
A great insight as an Air Transport and Operations student. Currently pursuing the Masters in The Netherlands. As an Indian, this made a lot of sense :)
Thank you, Dan. I have flown QR, Indigo, Emirates, BA, Alitalia and KLM to/from MUM and DEL. Notice -- no Air India?
Great job, Dan. Very interesting research.
Hey dan you’re right about the perception of international airlines being better. One of the reasons could be ticket prices. For example while travelling to the US, ticket prices on British airways,Lufthansa etc was half that of jet airways and air India
I actually love these videos!
You have covered some amazing nuances of the Indian market Dan! So thank you so much for that!
Excellent research! Thanks
Loving these videos Dan!!
Your description of Indian airlines rings true with my very limited experiences. I was in Bengaluru (BLR) when JET collapsed. This city has one terminal and one or two runways. International flights used the airport at night. My flight leaving was scheduled to leave at 3 AM!
BLR was in the midst of building a second terminal. Rumor was it would have been for international flights only.
Dan, amazingly interesting video's. You just keep going! So nice!
I really love this new format 😍😍😍
Thanks for making this video. Waiting for your other video eagerly.
Excellent documentary video. Full of insight. Thank you Dan.
Jewar Airport is also being built in Uttar Pradesh
with initial capacity of 6-8 Mn passengers and 2 runways
expanding it into 60-70 Mn passengers with 6 runways
Great video. Lot to understand, but still learning something is better than nothing.... 👍
Loved the presentation and information. Hope the aviation industry thrives back again all over the world. It still remains the most fascinating industry in my opinion. 🤗
Sir you make such educational videos sir thank you also posting great videos during this pandemic
Brilliant! Informative, inspiration, in-depth... look forward to more mini documentaries... these are top grade, better than CNN or Bloomberg
I would love to see Jet Airways case study.
Impressive research on the Indian aviation market. As much of a skeptic I am in opinions drawn by most many aviation critics, this has to be by far the most sensible insight into the overall health and challenges faced for continued sustainability in Indian aviation.Just to add, airlines in India recorded a profit for the last quarter of 2019. Indigo reported profit upward 500 million $, Go air and Spicejet too reported profits. Vistara still needs to break even and with international ops soon to begin, they wouldn’t want to loose time. As you have pointed out, the poor government policies as among the main reasons for airlines to barely make ends meet, there are some other points that I would like to shed some light on:- 1) Govt has recently reworked on the air navigation restrictions that were in force all along, paving the way for more direct routing, avoiding circumventing military and security navigational restrictions, thereby cutting costs. 2) India inkling on a dream to became a hub is still a long shot, at the moment only Delhi has the geographical, national significance and a fairly acceptable infrastructure to pull of something of a hub model, however, this model is in itself questionable in the post covid world. India has the scale and the means to capitalise on the very under served colossal middle class population. Just catering to the millions within the country could make it cut across the nation for airlines to break even. The gulf airlines monopoly and the past governments liberal policies encouraging international airlines at the perils of our own state carriers have much to be blamed for it. All hope is not lost, the new policy in the wake of COVID has given a much needed impetus for Indian airlines to operate internationally on a priority basis. Let’s hope things change for good.
Your channel is really informative from a Kenyan fan
Another great reason for no indian airlines serving internationally is the weakness of indian passport which allows citizens to visit visa free to smthing around 63 countries only as compared to 185 countries which US citizens can travel visa free and getting a visa involves time and process which people tend to avoid!!
USA is other case but 63 is not a bad number it's just average,many countries have lower than that
Also the nation is too poor
@Paul Fox no, we’re actually quite rich. But due to the GDP per capita, so many people are poor.
XxMegamonsterxX I’m not Indian
@@themaus3847 Rich?? On what parameter is India rich? With a population of 1400 million and less than 2 trillion dollars GDP India is one of the poorest countries with the maximum number of people living in poverty .
Nice video. I am looking for more aviation related videos
It wasn't always dirt cheap even at the hight of the aviation bubble. I remember having to pay 200 usd for one way tickets to Daramshala from Delhi circa 2009-2010. Considering I only had to pay 300 dollars round trip for my international flights to Delhi from my country.
Well, thats how the govt is running things here. I remember when the govt asked legendary aircraft designer Kurt Tank (who designed the FW190) to develop an indigenous aircraft (HAL MARUT). First, they didnt give him enough time and resources to build a proper aircraft. and when Kurt Tank did make an aircraft, the govt blamed him for not making a proper aircraft. Bureaucracy just wasted away all of Tank's potential.
Well the government had KGB to satisfy
I worked with Indian internal East West Airlines in the 90's as a supplier. It collapsed after the MD was shot dead by a Mumbai criminal gang. There were some allegations floating around at the time. EWA was the first scheduled private airline in the country that was launched as soon as the Indian economy opened. It will be interesting to see what you actually say about Jet Dan. I'll have a look at that video on Jet Airlines to see what you say about their rivalry with EWA at the very beginning!!!!
Yea buddy! Well done as always, Dan. A great analysis for a key region in worldwide aviation.
@nonstop dan
You have not considered two very important factors in the domestic sector.
India has a very intense railway network that provides access to the middle of the city. The railway times are set at a good time with its super comfortable at a third of a price. I prefer an overnight journey on the train which I can board in the middle of the city and reaching less than 15 minutes prior to departure.
Airports are situated away from the city which add an additional hour or two of commute, in addition to the cost.
Indian Railway plays a great alternative to flights, especially for travels less than 7-8 hours (500 miles).
It's a good video. Thank you for making a good analysis on the Indian Airlines
Wow!!! Nice video. BTW earned yourself a new sub!!! Keep up the great work!!!
I think major factor is that India is surrounded by quite a few foreign hubs conveniently located for major markets (Europe (middle east), Far East & USA (Europe or Far East). A lot of these hubs are bases for good quality airlines (great customer service) ,reasonable prices, often massive baggage allowance and often connecting flights to airports near their final destination in India. While the Indian international airlines have in my experience got a reputation for poor service, planes not maintained well and delays, so people tend to spend a little extra especially for these long haul flights from US or Europe.
Hi Dan, really appreciate you for this through analysis. I am indeed looking forward to the video on jet Airways.
I know the quality is little low. Anyway glad to see my video footage on your channel. Thanks 🙏
As a person more in the tech industry, I have the a similar question, how is it possible for India not to have their own phone or computer brands? Especially in tech that many Indians have a great knowledge in both hardware and software....
I get no phone brands, setting up hardware manufacturing is tough and due to globalization its simply easier to import existing models from China. Samsung may be korean but the handsets are made in China and its a short haul. They already run android so how would a domestic competitor compete? Same situation with apple. Computers end up having the same problem as well.
If they aim to open the new airport in 2023, it won't actually open until at least 2027.
About 2030
You are the RUclipsr whom I follow the most you just excellent videos sir
Awesome work Dan, keep it up
Hello Dan. I think you are mistaken, but TruJet is still flying! They are operating flights every day even during the pandemic! The Wikipedia page of TruJet says it has ceased operations but it is still flying! Have a look on flight radar 24 or other social media platforms. They are active!
Other than that, a very informative video. Really liked it :D. Can't wait to see the Jet Airways one. There is also news that Jet Airways is getting revived. Hope to hear that news in your video too!
Four reasons:
1. Huge tax
2. Huge airport cost.
3. Huge fuel price
5. Price sensitive
What mic are u using for ur voiceovers Dan?
most of the points are accurate but profitability also depends on the route we have available to fly in india the air space available for commercial is very less {has been changed now} and tax on fuel. but few points that are wrong are
1 trujet is not bankrupt
2 and spicejet is not profitable consistently { indigo and goair is}
Good point - it seems Trujet is almost entirely grounded, but perhaps not completely. Regarding Spicejet, I mentioned that they and Indigo are "almost" consistently profitable :)
@@NonstopDan spicejet from 2012 till now, only 3 years in profit rest all loss and twice was in verge of bankruptcy and still is. But now leaving IndiGo, every airline is on verge of collapsing. Tough times in indian aviation
Superb video Dan, please make more