Spice Jet
affordable and dynamic fare structure, power of technology, power of performance, power of safety and experienced management. However, the company is unable to maintain consistency in its services through out its operations across the country and is bugged with problems like flight delays, bahaviour of the staff, service levels, etc.
LCC segment is ever growing in the country International tie-ups would boost brand image and reach
a. It gets impacted by a lot of things that are not under its control (the overall economic sentiment, taxes, outbreak of illnesses, price of oil and so on)
b. While the industry has to face a lot of competition, the industries that airlines have to deal with are highly monopolistic. As an article in The Economist puts it "Two firms-Airbus and Boeing-provide the majority of the planes, and airports and air-traffic control are monopolies." Given this, airlines are not always in the best position to control their costs.
But like Mallya, aviation is not Maran's primary business. His primary business is spread across television channels, a cable TV distribution network and newspapers in the state of Tamil Nadu and the other Southern states. Further, these businesses have always had the political protection of the DMK party (Maran is the grand-nephew of DMK boss M Karunanidhi).
Maran's lack of experience in the aviation sector started to come out as soon as he took over the airline. After taking over the airline he went around installing his own people to run the place. As a report in the Business World points out "With the change in ownership, everyone at the airline knew that the chief executive officer and chief financial officer would change...The replacements on the board were largely Maran's own family members and trusted aides but not necessarily people with experience of running a business - leave alone an airline."
The airline also saw a steady exit of employees who knew how the aviation business operated. Another major
LCC segment is ever growing in the country International tie-ups would boost brand image and reach
a. It gets impacted by a lot of things that are not under its control (the overall economic sentiment, taxes, outbreak of illnesses, price of oil and so on)
b. While the industry has to face a lot of competition, the industries that airlines have to deal with are highly monopolistic. As an article in The Economist puts it "Two firms-Airbus and Boeing-provide the majority of the planes, and airports and air-traffic control are monopolies." Given this, airlines are not always in the best position to control their costs.
But like Mallya, aviation is not Maran's primary business. His primary business is spread across television channels, a cable TV distribution network and newspapers in the state of Tamil Nadu and the other Southern states. Further, these businesses have always had the political protection of the DMK party (Maran is the grand-nephew of DMK boss M Karunanidhi).
Maran's lack of experience in the aviation sector started to come out as soon as he took over the airline. After taking over the airline he went around installing his own people to run the place. As a report in the Business World points out "With the change in ownership, everyone at the airline knew that the chief executive officer and chief financial officer would change...The replacements on the board were largely Maran's own family members and trusted aides but not necessarily people with experience of running a business - leave alone an airline."
The airline also saw a steady exit of employees who knew how the aviation business operated. Another major