Yup, that is as good as it gets. You see, we have heard all the airlines whine about losses and loss of revenue, all whilst they added over 41,000 daily flights over the last 15 years. So whilst we see the stupid people (the Guardian journalists) have a go at people with a private jet, they are merely losing the plot by actually looking into airlines. So it was an interesting sight to see ‘Air Arabia delivers record 2022 net profit of $327 mln, up 70 pct’ (at https://ara.tv/y756m). This led me to the thought what if all those airlines are working with the wrong business model? Alarabiya News gives us “Air Arabia, the first and largest low-cost carrier (LCC) operator in the Middle East and North Africa, announced historic financial results for the full year ending December 31, 2022, almost doubling the profit and passengers’ numbers of the previous year, as the airline continued with its growth plans, delivering remarkable financial and operational performance”, when I see ‘low-cost carrier (LCC)’ on that side and we get “the Japanese domestic operator was Y3.4 billion ($25.8 million) in the black for the nine months to 31 December 2022”, I do understand that this is domestic, but at a mere 7% of what Air Arabia is doing. Now, don’t get me wrong. I do get that I am (to some extent) comparing apples to oranges, but I bet you dollars for donuts that some of these airlines need a business overhaul. As I see it, the 90’s model of just adding flights does doesn’t do it. And the environment is getting hurt in the process which the Guardian wasn’t properly reporting on, but that is my personal view.
So what can be done? What must be done? We see very little but the numbers are out in force and I wonder who is looking at the options there. Perhaps it is all ‘saved’ by accountant abracadabra, who can tell and that is the problem, no one is actually looking into it and now I have questions. Perhaps my questions aren’t entirely up to the mark and there are factors that matter, but that still warrants my view of their business plan overhaul. So to speak, when the accountants tell them to put their profits in the upright position someone better listen, because as I see it Air Arabia is showing them how (at present) it could be done. As I see it, they have 327 million identifiers that they are on the right flight trajectory. Even more so when we see that their profits are reported to be 70% up, that is not some trivial matter. That is something airlines need to take a closer look at and If I am the first one to mention it, you get to wonder why others are asleep at the wheel, because as I personally see it, that is what it amounts to.