Monday, July 10, 2017

Mega losses apart, six charts that show true picture of Air India as against other Indian airlines

Even as the government is trying to find an answer to the process on how Air India will be sold, at least two airlines, i.e. Interglobe Aviation and Tata Sons together with Singapore Airlines have shown interest in the national carrier.

Prime Minister Narendra Modi, as reports suggest is aiming to get rid of the airline from the government's books by early 2018 as the Union Cabinet, on June 28, 2017 sanctioned a in-principle approval for disinvestment of Air India.

Tata Group was reportedly the first one to make a move along with Singapore Airlines.

On June 29, 2017, Aditya Ghosh, President and Whole Time Director at Indigo Airlines, in the letter to the aviation ministry, said, "As the Indian government embarks on the journey of privatising Air India and given Indigo's track record of having created a consistently profitable airline with a strong balance sheet, kindly treat this letter as our expression of interest in acquiring the international airline operations of Air India and Air India Express."

But how does Air India stack up against its private peers like Jet Airways, Spicejet and Indigo Airlines?

Air India's revenue generating has been quite slow compared to its peers. It's revenue grew at a CAGR (compound annual growth rate) of 7.21% between FY11 – FY15, whereas Jet Airways rose at CAGR at 8.6%, SpiceJet at 11.91% and Interglobe Aviation at 29.39% for the same period.
10/07/17 Pooja Jaiswar/ZeeBusiness