Air travel no more a luxury in India

It’s not one, four airlines have approached me. But, wait. I have to first decide whether I should get into this industry. This industry is like a big-budget film. Either it will be a super hit or end up as a damp squib. I have sought experts to study and suggest me the right option. Even if I decide to get into it, I will do it in my individual capacity.” That is what media baron and Sun TV Network chairman and managing director Kalanithi Maran had told Financial Chronicle a few months back, much before any media reported about his talks with ETA Star Aviation. Having picked up a 37.7 per cent stake in SpiceJet and followed up with an open offer to acquire an additional 20 per cent, the soon-to-turn-45 Maran spoke to D Govardhan in detail, elaborating on his aviation foray. Excerpts:

Why airlines?
Why not? When I planned to enter satellite broadcasting with a focus on regional content, everyone felt it would not sustain. Look how many players and channels are there today. When I looked at radio, people said, ‘radio is dead’. Today the scenario has changed with so many radio stations.Similarly, when I chose to enter DTH (direct–to-home), people asked whether I will be able to take on the established biggies. Within a short span of time, Sun Direct has become India’s No 2 DTH operator. I do not go into the general perception that people have about an industry. If an industry is good or great, everyone would want to be there. On the contrary, I see an opportunity in an industry and work towards it.

At present, the Indian aviation industry flies on an average four million passengers a month and is growing at 15 per cent per annum. The rising purchasing power is percolating down even to smaller cities. With more airports coming up, if we can price the tickets affordably, we have a greater opportunity.

But the industry has to face many variables that are not under its control. Even billowing ash from a volcano in Iceland can put well laid-out plans of an airline totally off mark?

There are factors beyond anyone’s control, such as recession. The volcanic ash is a one-off thing. In the recent global slowdown; even bigger, full-service players were affected, but low-cost airlines turned around and made profits. Airlines such as Ryanair, South West and AirAsia are some of the examples.
In the Indian context, except for long-haul routes like Chennai-Delhi, one need not focus on things like food and snacks. Instead, it is better to focus on ticket prices and enable more and more people to travel.
14/06/10 D Govardan/mydigitalfc.com

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Categories: New Jun 2010, SpiceJet Jun 2010