Saturday, November 14, 2009

VIJAY-LALOO

Vijay: - No, no, Arindam….I will not drink Red Wine; you better give me my Kingfisher Strong Beer…

Arindam: - Ok, Sir, as you wish, but thanks to both of you for coming to this show “Wine with Arindam”. Mr. Mallya, you have succeeded in acquiring the Air Deccan completely and now, it has been branded for the low-cost airline segment as “Kingfisher Red”. So, is it a positive synergy for you?

Vijay: - Ya, of course, why not? See, in the low-cost Airlines segment, our service is the best in comparison to Spice Jet, Indigo and others. Maybe, we charge around Rs. 1000/- more than the other competitors, but our timings and facilities are just superb. And, what to say about the Real Kingfisher Airlines; you will just enjoy the journey; and our hot and lovely air-hostesses are always there to help you.

Arindam: - Hmm...if I ask you a direct question that, with the market recession in full flow, and the decrease in crude oil prices, are the airlines sector booming day by day, in such a fashion, that, even the middle class economy people are preferring flights rather than trains.

Vijay: - Oh, yes, indeed it is…a day will come, when hardly people will think to travel in trains.

Arindam: - Laloo ji, do you agree with this statement?

Laloo:- bilkul galat statement hai yeh…haan maana ki acquisition ke baad, Kingfisher Airlines ko faayda hua hai…crude oil ka price geerne se…flight ka fare ghaath gaya hai…isiliye jyaada customers flight prefer kar raha hai…but there is a limitation, in the purchasing power of the tickets. First of all, the way the ticket fares of flights fluctuates, that creates a negative impact on the customers’ minds.

Vijay: - See Laloo ji, at the end of the day, we want business and we only understand the profits. You have to agree that, flights have more profits than the Railways.

Laloo: - No, I totally disagree. I think you have not understood our latest strategies. First of all, we started providing 20% of the entire rail tickets to the booking agents like IRCTC, etc. Let me explain you by an example. Maano ki 50 tickets hai ek compartment ke liye. Har ek ticket ka price assume karlo Rs.100/-, aur tatkaal me ticket ka price hogaa Rs. 250/-. Aab maano 40 tickets sell ho gaya hai…baaki raha 10 ticket…usme se maano 4 tickets kisi ne IRCTC ke through kaat liya hai…50 rupees jyada de ke per ticket, usme se Railways ka commission hai 20 rupees. Baaki raha 6 tickets, joh ki IRCTC waale sale nahi kar paayega… toh woh log wahi ticket humko waapas kar degaa, with a cancellation charge of extra Rs. 20/-. Aab yeh 6 tickets ko tum tatkaal ke jariya sell kar rahe ho…So, what is your increasing profit by following this strategy, the increasing profit is :- { (40*100)+(4*20)+(6*20)+(6*250) – (50*100)} = Rs. 700/- per compartment. Therefore, for 15 compartments, we have increased profit by Rs. 10,500/-

Vijay: - uuh, in our case, for per seats, we have increased our fares at least by Rs. 100/-, and we have around 200 seats. So, we have increased the profits by Rs. (200*100) = Rs. 20,000/- . It is much more than the Railways.

Laloo: - Wait, we have also adopted another strategy. We have increased at least 10 seats in each compartment, by adding one extra middle berth at one side. So, for each compartment, our profit increased by Rs. (10*100) = Rs. 1,000/- . Therefore, for 15 compartments, it is around Rs. 15,000/-. So, in total, we have increased our profits by Rs. (10, 500 + 15,000) = Rs. 25,500/-, which is Rs. 5,500/- more than the Kingfisher flights. Aur ek baath boloon, aap ko Mr. Mallya, aap ke flight pe har waqt, 200 seats full nahi hotaa hai…par train me seat full ho na ho…phir bhi kuch na kuch profit ho hee jaata hai Railways ko, due to Tatkaal and Cancellation system.

Vijay:- Well, but I think, we are booming day by day, and trying to attract more customer, by improving our service.

Laloo:- arrey, tum log chaye kuch bhi karlo, phir bhi tumhara flight ka customer reduce ho jayega, due to the latest policy taken by the GMR company to charge extra money for using International Airports of India…ha ha ha …

Vijay: - Really, I also oppose the Government’s initiative to support the GMR for such bullshits….After all, we the airlines company are suffering, because you are basically charging the customers, without any valid reason, and they do not prefer the flights, nowadays. But, I must appreciate Laloo ji, that your strategies are really boosting the Indian Railways.

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