Mumbai: GoAir’s recent appointment of former Jet Airways and Air Berlin executive Wolfgang Prock-Schauer as its new CEO has led to expectations of higher profits at the airline. GoAir has managed to post profits, albeit slender, in the last two years whereas most of its competitors made huge losses.
Prock-Schauer’s predecessor, Giorgio De Roni, who quit last March, is credited with turning around the airline and bringing it to profitability.
The appointment couldn’t have come at a better time for Prock-Schauer with jet fuel prices, which account for 40-60% of an airline’s expenses, falling about 23% in the last 12 months. Nevertheless, several other challenges will test the 34-year-old industry veteran as competition intensifies in an already stretched market.
The domestic air space is getting cluttered with the arrival of new airlines. In the past few months, full-service Vistara and no-frills airlines like Air Pegasus, AirAsia India and Air Costa have launched operations in a space that is already crowded with incumbents. There are reports of some other groups applying for permissions to set shop.
05/06/15 Rhik Kundu/Financial Express
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Prock-Schauer’s predecessor, Giorgio De Roni, who quit last March, is credited with turning around the airline and bringing it to profitability.
The appointment couldn’t have come at a better time for Prock-Schauer with jet fuel prices, which account for 40-60% of an airline’s expenses, falling about 23% in the last 12 months. Nevertheless, several other challenges will test the 34-year-old industry veteran as competition intensifies in an already stretched market.
The domestic air space is getting cluttered with the arrival of new airlines. In the past few months, full-service Vistara and no-frills airlines like Air Pegasus, AirAsia India and Air Costa have launched operations in a space that is already crowded with incumbents. There are reports of some other groups applying for permissions to set shop.
05/06/15 Rhik Kundu/Financial Express
