Airline Industry

Question 0

Describe India airline industry and Vistara

Answer 0

• Oil is expensive in india due to state tax and there are a lot of competition among startup airlines
• This leads to cheap flights and up to 10 billion dollars of lost in total among airlines. Airlines are holding on waiting for number of passengers to pick up.
• Vistara, new business opened by Singapore airline and tata group approach this by offering more upscale flights for a bit more expensive.
• It remains to be seen whether there are enough demand in a price conscious market.

Question 1

Describe current state of Airbus A380

Answer 1

• Customers love it but demand is not as strong as expected.
• The plane is large and most airlines struggle to fill the plane. Two engine widebody planes like 787 dreamliner and airbus a350 is preferred.
• Only around 300 of the projected 1200 a380s have been sold so far.
• High chance it will be discontinued.