Why Indian Airlines FAIL | Business Case Study

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Earlier this year, GoFirst, an Indian airline, filed for bankruptcy and suspended its operations. However, this is merely the most recent addition to a growing list of failing and failed airlines in India. In fact, over the past decade, a total of 13 companies, including prominent airline companies such as Kingfisher, Air Deccan, and Jet Airways, have ceased operations. Consequently, the question arises as to why so many airlines fail in India.
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Markers
00:00 Intro
01:49 Go First's Failure
06:27 Why do airlines fail?
21:16 Aviation Boom

[@mohak_mangal]

Follow me on Linkedin for punya: www.linkedin.com/in/mohakmangal/

[@foodiography]

Can aeroplane run from ethanol like cars are running make some innovation on this make aeroplane like EV

[@flashjsr]

@@foodiography If there is a engine designed for it with high enough power for a flight, which is highly unlikely for ethanol.

[@Infinitelove0143]

Bhaiya you are not active on linkedin🥲

[@foodiography]

@@flashjsr understand but people should invent or do some innovation on this see i am not science person just I thought on the way are you from Jamshedpur flash jsr

[@flashjsr]

@@foodiography The reason aviation fuel is special is because of its high rate of combustion. If it was possible it would have already been done unless we find some new element that can make it possible. Aircrafts are getting bigger and heavier. There are single seater plans that can run on ethanol but cant be commercially used. And yes i am from Jamshedpur :)

[@SyedSaifAbbasNaqvi]

This is a problem not specific to India. Airlines across the world struggle. However, what is specific to India is that we tax the airlines too much - ‘India needs to reduce taxes levied on aviation sector’ - we don’t have enough procedures to help a failing business. The bankruptcy code has to be strengthened far more.

[@divitkarekar5803]

sadly indian government is very greedy and increases taxes in every field despite record gst collections,maybe the new record high collections made them more greedy that they increased taxes even more indian govt really sucks and is really tax hungry,they are digging their own grave

[@TalwinderDhillonTravels]

Why should you support a dying industry? Let the free market prevail. Taxes aren’t the only reason these airlines fail.

[@ravirocks14]

Correct

[@pritamkundu2779]

Airlines struggles because they have high fixed cost, that's why income fluctuates so much.

[@smishra115]

I'd rather have more emphasis on high speed rail (not the bullshit we have in the name of high speed rail right now) than aviation, especially since the environmental impact of the aviation is insanely high. We need to think about what kind of a country we are leaving for the next generations. Taxing the aviation industry helps, in that regard

[@yashgangawane3381]

I earn around 26k per month and after all my bills and expenses, some savings, I can never afford to travel by a palne......thouhg I wish to fly someday🙂

[@jaijishnu527]

That's too less😢

[@sanjayrawal3068]

Don't worry bro... I'm a Nursing Staff in Indian Army and I earn around 60-65k per month but still even I didn't travel by air till now even though we get 50% concession in all travel s, hope so I'll too travel by air 1 day

[@JadooSingh921]

9/11 suna hai? Waha se recruit hoke direct plane udao

[@Griffith_1802]

Bruh , why are u revealing your salary 😂😂😂

[@yashgangawane3381]

@@Griffith_1802 I feel no shame to reveal the amount of money I earn, afterall I earn it through my hardwork.

[@abhimanyukarkara4218]

This man's selection and then structure of the content is commendable.

[@sharad7340]

Best ever thing would be the bankruptcy of air india The worst ever airlines on planet earth with worst staff

[@samiurrafin4492]

This guy is biased

[@sharad7340]

@@samiurrafin4492 sare ke sari airlines sahi hain bus air india ko band kr de worst ever hain

[@abhimanyukarkara4218]

@@samiurrafin4492 at some level we all are biased.. otherwise a content creater would just be giving raw data. Every time we analyze something, there would be some bias :)

[@abhimanyukarkara4218]

@@sharad7340 TATA has taken over it recently, let's give it some time.

[@diegohera88]

Nobody is talking about the real issue why companies fail in India inspite of rising demand & young population…..the per capita gdp is just $2600 comparable only to some Central African obscure countries. We can’t afford luxury things except the needy ones. Railways will always be lifeline of Indian transport unless per capita crosses $10k at least.😅

[@Protein_killer2]

Sahi baat hai mera father ka income 12 lakh per annum hai or family me 5 members hai, me and younger brother and mother and a grandfather show family per capita is 2 lakhs 20 rupees, if our mother or sister start earning then may be india per capita increased

[@shantanuchaurasia5232]

Per capita is of no use when individuals buy tickets , just 1% of Indians equals to 1.5 crore and their per capita would be higher than $2500 GDP per capita is only good for comparison and policy making Apple just caters to 0.1% of total population ie 15 lakh and they are expanding as hell So understand that stats not always depict the true picture

[@SigmaSankalp]

Harsh truth

[@Protein_killer2]

@@shantanuchaurasia5232 i know bro government ko ya top 1 percentage log ko haata ke gdp nikalna chahiye tho real truth ayegi samne Lakin bahut log apne real income nahi batate

[@nfmg1719]

Even if 5% of Indians have higher per capita income then also about 7 crore people can afford airlines which is a very huge number. That's why this isn't a issue

[@mohamedfaizan9844]

There is so much potential for the Indian aviation market to be the biggest in the world. Every Indian who lives abroad wants to travel directly to India, but have no option but to use the Gulf airlines as they have the connectivity and volume to keep tickets cheap. And they are directly funded by the very very deep pockets of their government. In terms of volumes, no one can beat India as there are 30 + million people of Indian origin who work or study abroad - they are not just tourists like the traffic from Europe or US. I wish in the near future Air India makes Chennai, Bangalore, Hyderabad and other big cities as hubs instead of always routing their major international routes via Delhi or Mumbai.

[@iam_arnavisaha32]

even indias airport are better rated than chinese! latest report released by forbes about infrastructure of airports!

[@JadooSingh921]

Tldr?

[@mohamedfaizan9844]

@@iam_arnavisaha32 we’re talking about connectivity though, and in that measure, at the moment we are woefully behind the big Asian ones like Shanghai or Singapore or Dubai. Well I have big hopes on Air India now. Let’s hope it solves this problem.

[@richardsking]

Don't worry bro, both air India and indigo will solve this issue

[@iam.mystic]

​@@JadooSingh921can't believe people have gotten this lazy. Do you not read any non fictional books?

[@SyedSaifAbbasNaqvi]

These are issues with the aviation industry: 1.Excess capacity 2.Flawed demand projection 3.Flawed growth projection on the wrong assumption that all Indians can afford to fly 4.Poor cost management 5.Skewed capital structure 6.Unhealthy discounts 7.Faulty pricing strategy 8.Undue emphasis on top line & ignoring bottom line 9.Over staffing.

[@sharad7340]

Best ever thing would be the bankruptcy of air india The worst ever airlines on planet earth with worst staff

[@saquibpasha9998]

most important is taxation

[@abhijitmaisuria5703]

10. Excess quota seats allotted to Gulf countries.

[@arshad1647]

Excess salaries as well

[@ss10483]

I liked your comment because you didn't mention Tax. In capitalist economy people must bear "tax burden" and its the bare minimum expected from citizens. People dream utopian communist and social ideology which has 100% failure rate. You cant apply subsidy on convenience by sacrificing essentials. Flying no way qualifies as essential.

[@prash405]

It is also bcoz Delhi security staff is very rude,I overheard some foreigners saying we will never come again here

[@JadooSingh921]

By foreigner you mean nepali?

[@BellamyBlake_]

​@@JadooSingh921europeans, americans, australians

[@utkarshsoni3300]

@@JadooSingh921basically westerners

[@devshreebhardwaj3096]

Have u seen how rude are the Airlines staff in Germany, Australia, US, UK! There would always be some grumpy passengers who think they are God gift to the world. I travel locally and internationally quite often and overall Indian airport staff are pretty friendly, incl the CRPF / Airport security team. Log unse behes bhi ker lete hai and they don’t say much. The only complaint travellers usually have is regarding less staff at the immigration! So many counters n half of them empty!

[@sharad7340]

Best ever thing would be the bankruptcy of air india The worst ever airlines on planet earth with worst staff

[@muralipoojithvutukuri781]

Airbus is not a French company. It's a collaboration between multiple European aerospace companies.

[@sujatakamthe5306]

Majority of stake holders are from france

[@yogeshkrsharma3054]

Majority stake fance ke paas h 👍 tbhi tata ne Airbus aur boing dono se liya h nhi America mc kuch fake news faila kr tata ki reputation girwa dega ❤

[@ashivkumar2075]

And also manufactured in France Toulouse

[@karthikeyareddy6758]

@@ashivkumar2075and also Hamburg,Germany

[@rishabhadiga8864]

When your major stakeholders are french it ends up being known as a French company if in technicality it isn't.

[@SamirYadav12357]

wah bhai... Aap to full speed pe ho... Back to back videos. Keep going mohak. Aap ki effort ki wajah se i have already share your KZbin channel in all my family and friends WhatsApp groups. Just keep making quality videos like this.

[@skyroshorts]

A reform which India needs in aviation is desperate need of a Airport Hub unlike Dubai International airport also would relief airlines and help airport been a major role in international travelling

[@user-sj6eu8sp9v]

Great video, Mohak & team! Please make more such content. We need to ponder over the cultural reasons behind governance structure situations in Indian businesses.

[@maybeiamunique.69yrsago]

​@@Some_one_twoyea about 163 rupees

[@user-sj6eu8sp9v]

@@Some_one_two all that a broke grad student can afford 🥲

[@Sagardeep_Das]

707 comments in this video. Couldn't have been a better number at the time of watching this video. Boeing is the king of the sky and proudly the reason Ambani has his own private jet as Boeing 737. Also good video on aviation industry Mohak. The new aviation policy launched by govt will surely help the common folks to travel shorter routes across various states in India. We have a good market but yet have to improve on cost accommodation and tax burdens on airline operations.

[@ATM_Card]

So basically govt is the obstacle for the airline companies apart from volatility in crude oil price.

[@divitkarekar5803]

govt is always an obstacle for hard working businesses and indian people

[@sharad7340]

Not govt it's westerners and Companies like prittney and watt

[@promitdutta3029]

Learning: Never try to sell commoditized product/service as premium product/service. At least not in India. Don't have a wish/goal to serve premium new products to a cheap, cost sensitive customer base with a hope that they will switch to that product and remain stuck with your product/service or with your brand. The chance of failure is as high as Dettol killing germs.

[@sukhmeetsingh9520]

The management and operations of the company should be strong.. in India majority of airline failure is due to absence of proper management and neglect of the government !

[@animeJod360]

Ye aa gye Gyan pelne 😂

[@sandeepgupta6181]

Airlines make more money on business seats in same aircraft as premium and exclusive product. Some pax prefer to pay more, specially people on expense accounts.

[@scbose3940]

Air India, Indigo have given orders of 500 aeroplanes each. Akasa airlines is making profits ( started last year). Those who know buisness are still doing good.

[@varunoza6]

Akasa made a loss of 600 cr. Come out of WhatsApp University.

[@Javed23022]

In the Airlines business, failing is better than falling 😅

[@TiwariAbhishek_]

Hey Mohak, I have been watching your videos since 2019s . Finally , my first video recommendation for you - How good is a coalition goverment for a developing country.

[@sharad7340]

Best ever thing would be the bankruptcy of air india The worst ever airlines on planet earth with worst staff

[@sagarpatil6086]

There should be a communist government in India, just like the China for development❤

[@sagarpatil6086]

There should be a communist government in India, just like the China for development❤

[@livefreetodiehard2550]

Next topic how indian railways have entered losses. Major reason in my opinion, reducing general coaches and denying non reserved sleeper tickets

[@devavratsohoni9747]

Excellently complied and explained video 👌🏼

[@dennisrvd6248]

Problem for indian airlines downfall is middle East airlines flight are given free routes in domestic route...

[@MAK335]

lol proof?

[@akshaypendyala]

@@MAK335 There are MOU's signed between middle eatern airlines and Indian government to promote aviation. Why don't you just google about this?

[@sandeepgupta6181]

UAE Airlines now flying from almost all major cities in India to DXB but they do not allow equal rights to Indian Airlines to fly into DXB. Instead they offer other smaller airports in UAE. For Middle East, they have become our national carriers.

[@MAINLYSST10]

Aviation is one of my favorite topic.. And you explained very well brother ❤️

[@Abhishekkalravlogs]

Indeed sir

[@rockrockrock9899]

Waste fellow

[@MAINLYSST10]

@@Abhishekkalravlogs❤️❤️

[@user-wb1uc3jo4y]

The video was really informative as well as you and your team has really done a very good research on the aircraft and made the video short and crisp in a simplified way. In the coming future pls keep your videos authentic and informative which will help me to get more awareness in the society.

[@siliconhawk9293]

i vividly remember watching a video as to why so many air companies are in loss there is some legal loophole they try to take advantage of. i think it was a "think school" video

[@jahidhosssin54456]

Same problem in Bangladesh too

[@pagalpantiunlimited9453]

Yes hats off someone talk about this aviation problem in India

[@dangerdev004]

Though the aviation market is booming for small routes i.e. under 1000 kms people don't want to pay high price of flying. Railways is far more efficient and cheap. People are ready to compensate their time if it saves them money. So people really use aviation for small distances only in case of emergency. As for long routes more than 1000 km the demand will keep increasing.

[@itn0687]

Many airports too are facing trouble as airlines are going bankrupt. A new airport in kerala which was already facing financial crisis had to face further blow when goair stopped their operations.

[@ayushshrivastava5039]

But in flights there's also need for comfort and luxury as well but not inflated prices nowdays low cost flying like spicejet delaying flights and not 30 min 1 hr but 3-4hr and then also they don't provide any refunds or rescheduling flights just because passenger are not more and also seats are really small now its ok if you haven't boarded and not waiting like traveling time and just waiting time i had experience twice when flight waited for 4hr didn't takeoff we have to just sit in flight and 2 hr for traveling total 6 hr

[@5agarDutta]

Hey Mohak, Your eyewear glass reflection is so adorable! 😊

[@stutisirohia_]

A very well explained video. Subscribed right away!

[@chitresh22694]

Amazing insights!

[@shruti_beauty]

Yaar sach me...aapne itna accha aur sahi tarike se sare baate khol ke batai...ab mujhe is baat me intrest badhne laga hai thank you so much ❤

[@v2vines765]

Tata is the name of trust❤❤❤❤

[@JadooSingh921]

And kartik is the name of lust

[@Munna-bd8pc]

India needs to become rich for working airlines.

[@sharad7340]

Best ever thing would be the bankruptcy of air india The worst ever airlines on planet earth with worst staff

[@iam.mystic]

Doesn't apply to India. We made rockets when we were at our lowest point. What we had then was minimal corruption in the spacecraft development.

[@sharad7340]

@@iam.mystic yt matters india when we have failed PSUs like Air India bsnl

[@Cryingwhore]

@@iam.mystic gawar hai kya How is building rocket related to being rich?

[@rishigupta4917]

"If you want to become a millionaire, have a billion dollars and start an airline!" -Richard Branson

[@Aman-pr3po]

Bhai in 3 topics pe video banao:- 1. Seema Haider case 2. Why IITs are going global? 3. About largest snake in world (there are some myths around it)🙂

[@VicTheflyingDentist]

Very good analysis and an informative video. Well done. 👍🏼

[@sauravroychow]

Excellent article as usual.

[@sushantkakade4866]

क्या इन्फॉर्मेटिव्ह व्हिडिओ तय्यार किया है भाई आपने,,मै,,2,3 बार देखा अच्छे से इस्को एक ही बार मे...बहुत ही किमती जानकारी है इसमे,,और इसे बनाने मे खूब मेहनत भी की है आपने....बहुत बहुत धन्यवाद❤

[@NoNo-su8wk]

now it was the 5th time he changes the thumbnail of a single video in 23 hr

[@arnabsengupta9913]

I am so impressed with Mohak 's subject matters. Good job once again.

[@vaishnavikothimbire983]

Hey mohak please make a video on UCC your videos are always are true factual you represent both sides in easy language some people say UCC is agenda in politics and some think its great in all perspective I know you will clear all the things in that video.. Love your videos from Maharashtra❤

[@amitchate1858]

You missed one thing biggest compilation to Indian aviation sector is Indian Railways 🚃

[@amitchate1858]

If you are agree make YT short on it

[@JadooSingh921]

No he are not agree coz u angrezi fail

[@Mukesh-Naik]

Hame aise aur video chahiye mohak sir ... , Thanks 😊💐

[@g_a_m_e_rharsh39]

Now I know why Vijay mallya started kingfisher first international flight route as Bangalore to London.

[@krishnendughosh7334]

😂😂😂😂😂

[@peacefulminds3628]

nice content! appreciate it. but please lower your background music while you're speaking. it's too loud.

[@parmars7577]

I think indigo is doing good in aviation market , their new operations to central Asia and Europe are extraordinary with lowest fare.

[@ankitshukla2928]

The Aviation Minister told last month that the Number of Airport in India will be more than 200 in next 5 years. How are they claiming it when so many airlines faling. I think a video should also made on this topic

[@rishadar]

I am from Kannur, which suffered a lot after Go first went down. Kannur airport doesn't have Clearence for international flights and air india price is too high.Govt is not allowing forirgn airlines

[@divyamehra2474]

Very Good Analysis @mohak!

[@Boyinthecircle]

The end really feels different, The music 🎶 aaah, so soothing

[@chawinashube]

saw the film sorarai potturu when it was released ! it was amazing

[@arhamjain4695]

Please make more videos on these intellectual topics!!

[@jarjarbinks3193]

My take: Moving people is always an iffy sector for making a profit. That is why so many passenger airlines (not just in India, but all over the world) have gone bust over the years. Freight moving is where the profit is. You can see by the way how freight companies like UPS, FedEx, and DHL have been growing and growing all these years. That is why I don't have high hopes for the new Mumbai-Ahmedabad high-speed railway in India. It will mostly probably go the Air India way, requiring massive subsidies to keep it afloat.

[@shreyatapadiya6971]

Too informative🙌

[@zeolitasherigara611]

Thanks for actual fact of airlines. ❤❤

[@REVIEWSONTHERUN]

Good video! Thanks for sharing it. ✌️

[@sandeepgupta6181]

Very informative video and based on substance. Some insight on Jet airways too is needed. KF failed mainly due to poor governance. GO suffered due to lockdown and payment disputes. PW suggested solutions but GO didn't consider. AI ordered 68 aircraft from Boeing and 43 from Airbus. ATF prices don't affect in short term, as ATF prices are covered in hedging contracts upto certain limit. Under UDAN, govt collects min 5k for each flight and passes this as subsidy.

[@albertishu9066]

Very interesting content.... loved it ❤️

[@nitinakash5162]

Very informative videos done by Soch

[@saswatkumarpadhi3687]

I don't like the decision of giving 9 airports to Adani . It's not at all a great move.

[@ashutoshjha8070]

Ok next time Modi ji will come to your house for Mr Saswat suggestion.😊😊

[@saswatkumarpadhi3687]

@@ashutoshjha8070 My house is always open for Modiji. But this is not a nature of Mr.Modi to take suggestions from educated persons. 😅 He only takes unplanned decisions.

[@sid.7146]

Privatization is the best move for india.

[@MusTelOJ]

​@@saswatkumarpadhi3687True lol

[@swapnilpokhariyal2586]

Modi sold country to adani

[@Rafian1924]

Airlines business model faces only one challenge of overall operating cost.. and the growing competition..

[@natarajboina7525]

Thanks for the book recommendation at 13:12 (Not just an accountant by Vinod rai)

[@mayank114]

Do u use computer glasses... Is it good to use..!!!!please reply

[@footballcc4618]

Forward exchange contracts should be utilised fully in order to curb the dollar rates.

[@84s_h_a_r_a_d19]

Air lines aur ye hawaai yatra sab amiron ke liye hii hai bass hum jaise gareebon ke liye nahi hai

[@alamwasim_]

Well researched team❤❤❤❤

[@insightgaming1926]

At 13:50, airbus is not french but a European company, Airbus's wings are made in one country, fuselage in another and tail in another. So saying it is french is not correct.

[@deepjoypaul3806]

The total length of the video is 26:11 and about the airline !!

[@Sande12523]

Thank u for the informative video....

[@puneetmaheshwari]

wow what a video bhut kuch seekhne mila mere ko thankyou

[@SK-fu5ud]

This guy is pure GOLD!

[@theawesomeman9821]

Wow. I did not know so many people had strong opinions on Indian airlines. It must be worse than I think.

[@thunderbest3909]

I remember the legendary Jet Airways 😊

[@JadooSingh921]

To isse mera kya fayda

[@sharad7340]

Jadoo Singh byaah krle

[@AA-oi9ru]

More informative than most of the media channels

[@contemplore]

Waaah waaah. Work is in flow bro ka❤

[@JadooSingh921]

Source?

[@johnysins69696]

@@JadooSingh921 wtf bro are you mad why are you commenting everywhere and spreading hate?

[@SyedSaifAbbasNaqvi]

@@JadooSingh921 Don't spam. Find the sources yourself. Don't act Illiterate. You are not a child that needs to be spoonfed.

[@JadooSingh921]

@@johnysins69696 Source?

[@Aman-pr3po]

Please make a video on why IITs are going global ?

[@Emotionaledits_official]

If a business starts growing then the government starts taking charge that's not good 😢.

[@miralam2582]

I think we should start some projects related to building aircrafts in INDIA just like the Chinese COMAC c919, which uses westerns engines ..

[@mantrachhaya6835]

That airliner is not competition for airbus and Boeing, they were built for a different purpose, china has 26000miles of high speed rail network, and that is why the domestic airline market in chinese is failed and, so in order to strengthen it they made their own airliner, also making airliner is no easy task way easy to say, way harder to do, even if we do it, not even Indian airlines will buy them, as they have contracts with airbus and Boeing for 100s of jets,

[@Ironbanner12]

Isn't the engine the problem?

[@124sagarjadhav5]

Please make the video about manipur incident

[@STOXIU]

the most common reason of failing any type of business in india is people are कंजूस .

[@mahrinsadiaera3632]

why have you changed the thumbnail bro?? whats up?

[@AbdulMoizAkbar999]

Please make a video on why haryanavi vine youtubers like Elvish Yadav and Baklol etc are so famous and their videos are trending

[@EdithClair-kp5xw]

Plzzz mohak do something on manipur and other same type of issues, kbtak ye sab shanti se dekh ke bs pareshaan honge, we have social media collect all raise your voice use this platform do something plzzz🙏

[@devashisdas5024]

Summary of this topic's two key materials into one sentence, is - "Water, water, everywhere, Nor any drop to drink!"

[@SachinKumarPankaj]

Mohak is Changing the thumbnail again and again 😂

[@arvindgodara5680]

It's Rajiv Pratap Rudy Not Rajiv pratap Reddy 15:25

[@mithunmahato309]

Next, why Indian Restaurant business is so tough. Approximately 60% of restaurants fail within the first year of operation and 80% fail within the first five years.

[@sarthakkumarpattnaik342]

Those news comments after each interval were funny tho😂😂

[@banurigopalreddy4014]

Make a video on importance of logistics

[@namasteyssc]

16:36 GR gopitnath pr ek film bani hai....lekin usme to dikhaya hai vo Malya ke sath judne se mana kar dete hain aur video me mujhe pta chala ki malya ne Air Deccan ko apne sath mila liya tha.... 😢

[@MRARyA-li8wt]

@sochbymm how you make this cool animations. Please tell.

[@herohero3279]

Well explained 👏

[@flashjsr]

I can speak for myself. why i would rather go for low cost flights is coz the flight experience for primum class is nothing special in India. when kingfisher was there it had the the Apple syndrome for its users.

[@santoshgalphade971]

Great Analysis

[@senguptasayn]

I used to air travel a lot. Now totally dependent on rail.though even that is seeming expensive now.

[@shiekhjcb8102]

Immense Information.

[@JadooSingh921]

Milk sheikh

[@Tinjinladakh]

from ladakh to delhi we have to pay 50,000 rupee

[@Babu777bhaiya]

Bro really?? 😲

[@Tinjinladakh]

@@Babu777bhaiya yes, poor/middle family sent there child study in other state, so its very expensive for them

[@hawkingdawking4572]

What about not travelling via air?

[@Tinjinladakh]

@@hawkingdawking4572 in winter the road is blocked

[@hawkingdawking4572]

@@Tinjinladakh There is a cost to everything. You should n't need to travel to Delhi at the first place.

[@dailydiet4667]

Please make a video on why most European and American flights are gone from Kolkata.

[@earthshuman3864]

Mujhe aaj pata chala ki kingfisher ki airline bhi thi Mujhe to sirf daru ka hi pata tha 😂