FlyerTalk Forums - View Single Post - Any idea why Tata or Reliance group is still not in Airlines business?
Old Oct 6, 2011 | 7:39 am
  #11  
oliver2002
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
30 Countries Visited
2M
All eyes on you!
20 Years on Site
 
Join Date: Dec 2002
Location: MUC
Programs: LH SEN
Posts: 52,490
You can make money by wisely investing and limiting yourself to certain segments. Indigo is a prime example of that. Any attempt to replicate a IT/9W kind of operation (a decent domestic and international operation) is a tough investment intensive venture that requires a lot of cash and doesn't offer a decent return unless you have other businesses (cargo, catering, IT, etc) subsidise the airline business. Add the terrible ups and downs and the fact that you are taking on the government if you compete with AI and its too uncertain to even go there. The Tatas and Ambanis are smart business people.
oliver2002 is offline