GoAir is only concerned with the domestic traveller & that too the ones minding their ‘budget’

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.”

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Maharashtra government’s Dharavi development policies need to be fair to the residents

Reacting to the government policy, Babo Rao Mane, President, Dharavi Bachao Samiti & Ex-MLA Shiv Sena told B&E, “We are totally against it and will wage a war against this injustice. The families residing here should get a minimum of 400 square feet each. We have 1,50,000 families living here, but only 67,000 are getting an apartment, which is unfair to the others.” The builder mafia is ferociously ambitious to grab this prime land (worth $10 billion) and convert the garbage dump into a gold mine. The lure for lucre is so great that foreign builders, Emaar & Al- Nakheel (from Dubai), an investment fund from New York and our domestic giants Reliance, DLF, Larsen & Toubro, HDIL et al, are vying to have a piece of cake. Talking about the bids, Ashok Kumar Gupta, Director, HDIL said to B&E, “We are looking forward to the bids for rehabilitation of Dharavi slums. We have a strong presence in Mumbai and our company has several on-going slum rehabilitation schemes.” Babo Rao Mane however feels that, “The government has sold out to the builders lobby. Earlier, government said that they will take the consent of 70% people at Dharavi, but then conveniently broke this promise. Government is resorting to dadagiri.”

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

..are prominently bright

CIA reports reveal that, Poland had received $100 billion FDI (foreign direct investment) and inflow of FDI has exceeded over $10 billion in 2006 alone. The country is now known as ‘Flying Eagle of Europe’ due to its sustained remarkable economic performance. Poland boasts of 99.8% literacy rate. Rapid growth of privatisation has generated a whopping 300,000 jobs last year. Exports for the year 2007 are estimated to cross 100 billion euros!

With increase in entrepreneurial energies & private sector’s role in the economy, the magnitude & momentum of growth will only head North Pole!

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

IIPM, Business College Ranking India BBA Institute India, IIPM IIPM - Nikhil Khade Online Welcome to 4Ps Business and Marketing The IIPM Think Tank IIPM New Delhi India Professor Arindam Chaudhuri, Renowned Management Guru & Economist IIPM Info Planning and Entrepreneurship Programme, IIPM New Delhi, India Business And Economy IIPM Placements New Delhi, India IIPM Business Management Institute India