Presently, his airline operates 396 weekly flights to 11 airports across the country, boasting the highest load factors for the past 6 months (90%). The carrier also does not tire of peddling the fact that it has the highest market share per aircraft in the industry. Like other low cost airlines, Jeh is also focusing keenly on train passengers 
to boost the bottom line of GoAir. He points out that the cost structure of GoAir was specifically tailored to deliver a product & service to this target audience, “Initially, the torture test to this was ‘who was the customer, how much do they pay’? Then work out the cost structure backwards & understand whether you can make money with this cost structure. We decided to move forward based on the fact that this (GoAir) is a good financial investment.” Considering that most aviation players today are in the red & consolidation is the golden buzz word in the industry today, does Jeh have an action plan lined up for taking GoAir forward? Ask him & pat comes his reply, “Consolidation will benefit those who want to cover all points of travel: domestic full fare, low cost & international, covering the entire gamut of 1 billion potential fliers. Take Naresh Goyal, he consolidated in the domestic market first & is now leveraging the domestic market share to fl y international. Mallya is consolidating because he needs to come to the same size as Jet & Air India to go international. GoAir is only concerned with the domestic traveller & that too the ones minding their ‘budget’, so we are comfortable.”
to boost the bottom line of GoAir. He points out that the cost structure of GoAir was specifically tailored to deliver a product & service to this target audience, “Initially, the torture test to this was ‘who was the customer, how much do they pay’? Then work out the cost structure backwards & understand whether you can make money with this cost structure. We decided to move forward based on the fact that this (GoAir) is a good financial investment.” Considering that most aviation players today are in the red & consolidation is the golden buzz word in the industry today, does Jeh have an action plan lined up for taking GoAir forward? Ask him & pat comes his reply, “Consolidation will benefit those who want to cover all points of travel: domestic full fare, low cost & international, covering the entire gamut of 1 billion potential fliers. Take Naresh Goyal, he consolidated in the domestic market first & is now leveraging the domestic market share to fl y international. Mallya is consolidating because he needs to come to the same size as Jet & Air India to go international. GoAir is only concerned with the domestic traveller & that too the ones minding their ‘budget’, so we are comfortable.”For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
