Re: Management Lessons from Kingfisher Airlines -
May 15th, 2012
Here you go with some stats:
1) Profit at Rs.650 crore on 48%u0025 revenue growth
2) India%u2019s largest low-fare carrier, IndiGo, posted an 18% jump in profit in the year ended March, performing better than many of its rivals, all of which except one made losses during the period.
3) Among rivals, low-fare carrier SpiceJet was the only one that made a profit during the year%u2014 Rs.101.16 crore, up 64.62%. Market leader Jet Airways%u200B (India) Ltd, including JetLite, made a loss of Rs.86 crore compared with a year-ago loss of Rs.420 crore. Kingfisher Airlines Ltd made a loss of Rs.1,027.40 crore compared with a Rs.1,647.22 crore year-ago loss. All three firms are listed, IndiGo isn%u2019t. Air India%u200B made Rs.7,000 crore loss in the same period.
4) IndiGo%u2019s total revenue rose 48% to Rs.3,946 crore on expenses of Rs.3,229 crore. It hired 1,097 people, including pilots, cabin crew and engineers, averaging a headcount of 94 people per aircraft.
5) The carrier made Rs.121 crore in non-operating revenue, potentially from sales and leaseback.
6) The airline was able to protect margins on tickets, figures indicate. IndiGo was able to charge approximately Rs.3,508 average airfare from 9.46 million passengers, based on total passenger revenue of Rs.3,518 crore. Its closest rival SpiceJet charged an average airfare of Rs.3,409 during the year, according to the airline.
I do agree as to this company might not have the substance but when it comes to competitors Indigo has slowly but steadily grown QoQ. Its definately a success story among other loss making Airlines.