In this episode of Plane and Simple, hosts Arpit and Jitesh welcome Behramjee Ghadially, an expert with 15 years of experience in Route Network Planning and fleet planning, having worked for carriers in the Middle East, Africa, and Asia.
In this episode we cover:
- Business Models: We explore the difference between point-to-point and the globally more successful hub-and-spoke model (pioneered by KLM).
- Profitability & Planning: Behramjee outlines the three levels of airline profitability, from covering Operating Cash Costs to achieving Net Profit by covering fixed costs and overheads. He also contrasts how route planning is influenced by private ownership versus government ownership.
- Good vs. Bad Routes: Hear specific examples of what constitutes ill-conceived route planning (such as recent Ethiopian Airlines launches) versus successful strategy (like the Air India Bangalore-London shift to Heathrow).
- Market Deep Dive: A significant portion is dedicated to the unique characteristics of the African market (high luggage requirements, last-minute bookings) and the burgeoning Indian market (trader traffic, medical tourism, and cargo potential).
- Fleet Strategy: Learn how aircraft selection (including the A220 and E95E2 regional jets) affects route viability, and why maximizing belly cargo capacity is vital for wide-body profitability, especially on India-GCC routes.
Behramjee offers candid advice during our rapid-fire session, including strategic expansion points for Indigo in Africa and Central Asia.