trinidadeG wrote:CaliguyNYC wrote:
I think it is beyond just their slots. It is also their market share and the fact that they have routes that are up and running all over the world. It is a classic turn around case (that you have the believe you have the skills to run it better). Launching new routes cost a lot of money. With AI, you will have to spend some money to improve service, aircraft, connectivity etc. But the analysis the buyer is doing should show that it is much cheaper to make AI better than starting from scratch. This is typically why airlines all over the world buy loss making airlines. You shed the routes that have no hope, tweak the routes that you think can be money spinners and of course love the money making routes you have. Given AI’s current network, IMHO any buyer needs a strong partner in the US & EU. Improve the planes and service and get feed on the EU/US side and hopefully you have a viable airline.
Now Vistara seems to be looking at flying to the US by themselves also.
https://timesofindia.indiatimes.com/bus ... 842556.cms
Might end up in a scenario where the Tatas shrink Air India's network to only fly regional international, and leaves the long haul to Vistara?
Could be although two brands just seems so inefficient - better to have one staff and cross use of everything. I could see Vistara becoming an operator for Air India (in the way regional airlines like compass operate flights for DL,AA,UA). SQ knows if Tatas focus on AI, Vistara has no future. Plus neither SQ nor Tatas have been aggressive on growing Vistara so I question their commitment. Part of me thinks that Tatas game plan has always been AI. Vistara just got their feet wet while Indian politics played out. WRT to SQ, I think the issue with them, and Western airlines that have looked to invest in India, has been the weirdness of Indian aviation. Jet’s financials were never clear (meaning where the money was coming from). I think SQ wants to see how everything plays out. And to be honest, I think Tata wins the PR message by bidding on AI on their own. It looks to the Indian masses that one of the best Indian companies wants AI. Will seem Kosher to 80% of the pop. Then SQ can come in afterwards through a merger with Vistara on clean terms fully knowing the AI structure with the GOI etc. Remember SIN really doesn’t have that many growth opportunities. More and more traffic will go nonstop. SQ will always do well because of P2P and getting their loyalists. That all said, I think it would be great if SQ was involved int he new AI. BUT, I think AI needs EU/US partners for feed more than it needs SQ for ultra lux travel. SQ’s network wont really help AI. On service, iIf AI could reach the level of KLM (just with indian hospitality and food), I would dance in the aisles.