It seems all the airlines are learining Mallyanomics

First there was collusion between Jet and Kingfisher. They wanted to join together and take the travellers for a ride. Now it seems that all the airlines have joined together to raise prices together. The surprising part is that the budget airlines are also joining hands with full service airlines. The price increase comes just a few days after they had cut prices.

A customer in hand is better than five in the bush

I am back with some more customer mathematics.

Your story has to be convincing

I was just going through my old papers and came across an interesting story that was sent to me by a friend. The story is interesting from the point of view that it highlights the importance of telling a convincing story in all your communications, oral and written.

There are still some who think before acting

In todays recessionary times, it is clear that people are going to lose jobs. However, before we fire people, some other options should be evaluated.

What can the dissatisfied customer do with the Internet?

If you ask me, quite a lot. Internet has allowed a dissatisfied customer the ability to reach far and wide without spending any money.

Tata should not have bought JLR-I told you so

I have discussed earlier that there was no need for Tata to buy Jaguar/Landrover company. Not only Tatas didn’t have a strategic fit (its car brands are no where close to JLR in terms of positioning) but also they were looking for unnatural growth by buying a company and brands which were too big for Tatas car manufacturing capabilities and brands. Its going to be a tough time for Tatas in the coming months/years.

Never believe what politicians say

I remember sometime back Finance Minister Chidabaram said that Indian economy is strong and not to worry too much about the financial crisis. He has led a lot of people to believe that India will not be affected badly.

Restrict promoters power to invest company’s money

In my earlier post, I had given some suggestions with respect to pledging of shares by promoters. Some other related issues have also to be taken care of.

No fuel for Kingfisher till payment made

For the first time, I think oil companies have realised what I have been saying for a long time, that is, Vijay Mallya of Kingfisher is taking everyone for a ride. Oil companies have threatened to stop fuel supply to Kingfisher Airlines from coming Wednesday if the airline does not clear its outstanding of Rs 158 crore which is overdue. While Jet has cleared its dues Kingfisher has not. I don’t think that Kingfisher should be allowed even one day grace. Oil companies should also charge Kingfisher interest for the number of days the payment is delayed. Even one day interest on Rs. 158 crores works our to nearly Rs. 8 lakhs at 18% interest.

Think before you leap to invest in Vijay Mallya companies

It seems Vijay Mallya (VM) has taken on huge debt to fulfill his expansion plans. His Rs. 6900 crore debt story is as follows: