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Showing posts from March, 2021

Why do Indian airlines keep crumbling one after the other, with the latest example being Jet Airways?

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  Multiple reasons and not just one. The failure of a company can never be attributed to one cause or event(very rarely if that happens), it involves multiple reasons and systems to fail simultaneously for a company to fail. Economically the airline industry is an  oligopoly  industry, with very little premium or monopolistic advantage one can derive. The industry's prices follow a  KINKED DEMAND CURVE , which means that your competitors won’t raise the price when your rise, but when you cut prices to capture market share your competitors would follow you. Added to t h e above, jet fuel follows a  rocket and feather phenomenon  of pricing. This means when there is a rise in the price of crude, the oil companies transfer the cost of airlines, whereas when there is a fall in the price of crude the oil companies artificially keep the price high and capture more profits in hand squeezing the downstream industries. The  business model  of jet airways w...

Which is the best airline I have flown in 2021?

I have flown on various airlines to several destinations, let it be domestic or international. However, there are several airlines I found to deserve the merit, so I’ll separate them into various categories: Business-class: KLM KLM’s business class may not be as fancy as other carriers and I only had the chance to try non-LCC business class 3 times, but I believe they still deserved the merit. Seats-wise they are quite comfortab l e to work and rest on, the food acceptable (they collaborated with an Indonesian celebrity chef for flights to/from Indonesia), and the Delft Blue gift were highly appreciated (think of world’s longest marketing campaign, perhaps?) The crew members were quite straightforward, although that makes the Dutch feel onboard even stronger. On the ground, their off-station lounges at Denpasar (where I got access to Garuda’s lounge) and Singapore was also quite fine, check-in was reasonably fast, and their luggage allowance considered decent for flights not going to/...

What are some interesting facts related to Airlines?

Have you ever been stopped from boarding the flight even though there is 20 min remaining for departure? Sometimes even 30–40 minutes in boarding could be a reason. You know why do they do that deliberately? It’s called  Overbooking. It is a very common concept among airlines (although not ever y  airline uses it. Overbooking simply means showing available seats more than available when you are booking online. This leads to booking more seats than actually there are seats. This is done to fly the plane at a full capacity. Since observation of many years has led the analysts of airlines made to think that even if flights are booked full, they are never taken off full. This is either due to a passenger being late or the passenger not arriving at all or canceling the ticket at the last moment. This led them to devise that they need a system so that they can fly full. So overbooking comes into the picture. By overbooking, they book more than the available seats and if everyone com...