In the course of completing these studies, and as a result of our continuous monitoring of Indian and global airlines with respect to their fleet and network plans, financing structures, commercial and distribution strategies, human resource and organisational issues, as well as maintenance and operational activities, we have become intimately familiar with the critical issues that drive success. Through this process we track, compile and understand best practices that can serve as benchmarks for the industry.
With airlines frequently experiencing challenges during their life cycle, and often failing, CAPA India intends to leverage our experience to present a new airline business model that will be more resilient to external shocks such as fuel price spikes, currency fluctuations, economic downturns, pandemics and others.
In this webinar, our consultants and analysts will seek to address the following questions:
• How do airline business models in India compare with global best practices?
• Within the FSC and LCC segments, are airlines operating the right business model, and what are the associated risks?
• Have airlines been able to achieve a non-fuel cost structure that is appropriate for this market?
• Do airlines really know their customers?
• Why are yields so poor? Can the market actually pay more? Is it the airlines that are driving down fares?
• Why have ancillary revenues not been better exploited?
• Are airline distribution strategies aligned to the business model they operate?
• Is there greater scope for technology and digitalisation to reduce costs and enhance revenue?
• Why have Indian airlines not been able to increase aircraft utilisation to international best practice levels?
• Can aircraft ownership costs be reduced?
• Are Indian carriers over-dependent upon the sale-and-leaseback model to generate cash?
• Have airlines in India been able to take advantage of their lower non-pilot cost of labour? Or has this bred lower productivity?
• Should airlines buy or lease aircraft? Would a more balanced owned/lease ratio be preferable?
• Do airlines have an appropriate risk assessment framework and mitigation strategy in place?
• How effective are the Boards of Indian airlines? And is there sufficient independence between owners and management?
Our recommendations will be pressure-tested in the second half of the webinar by leading international aviation executives, to be announced shortly. The conclusions will be shared with the industry and government, and will be integrated in the consultative roadmap for a viable and sustainable industry which CAPA is developing.