Tuesday, September 05, 2006

“Jet has to retain a moderate domestic share while rapidly expanding on viable international routes...”


In flight advertising (to increase revenues) should be employed and the focus should be expansion of the domestic market and additions of ‘profitable’ international routes. Chris Tarry, Aviation Analyst, Ctiara feels, “Jet has to retain a moderate domestic share while rapidly expanding on viable international routes...” Looking at the profitless volume growth in the domestic market (with passenger numbers estimated to grow by 28% till 2008, the LCCs will control 50% of the market in 2008, according to Globalysis Ltd.), Jet should establish a low-cost subsidiary – a process followed successfully by Qantas and Indian – or it could even engage in mutually benefi cial tie-ups with the LCCs. Merely dismissing LCCs is not a successful strategy. It could be a sure recipe for disaster.

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Source:- IIPM Editorial

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