The part that stuck with me is how much of the headline depends on the measuring stick. Extreme poverty falling from 27.1 percent to 2.6 percent is a real achievement, but when the survey changes from one visit to three and the item list grows from 347 to 405, reported spending goes up even if nobody spends a rupee more. The tell is the 8.30 dollar line. At that bar nearly four in five Indians are still vulnerable, and a 10 percent hit to spending nearly doubles the share below 3 dollars. The IndiGo half of the piece makes the same point in a different market. Yields up 34 percent and still a loss, because a 67 percent jump in the fuel bill beats any pricing power. In both stories the headline number flatters and the cost line tells the truth.
The domestic-network point seems relevant well beyond airlines. An expansion can look attractive on its own while making the original business less convenient for its customers. The cost of worse domestic timings ought to sit in the long-haul business case too.
Good one ….. most of forecast and report by WB or IMF are like that …. A different outcome depending on the assumptions….. added to it is the dollar conversion and the PPP assumptions . On the jet fuel i being a retired oil man remember those days we export in a loss ….. it may take more time for this to settle …
The part that stuck with me is how much of the headline depends on the measuring stick. Extreme poverty falling from 27.1 percent to 2.6 percent is a real achievement, but when the survey changes from one visit to three and the item list grows from 347 to 405, reported spending goes up even if nobody spends a rupee more. The tell is the 8.30 dollar line. At that bar nearly four in five Indians are still vulnerable, and a 10 percent hit to spending nearly doubles the share below 3 dollars. The IndiGo half of the piece makes the same point in a different market. Yields up 34 percent and still a loss, because a 67 percent jump in the fuel bill beats any pricing power. In both stories the headline number flatters and the cost line tells the truth.
The domestic-network point seems relevant well beyond airlines. An expansion can look attractive on its own while making the original business less convenient for its customers. The cost of worse domestic timings ought to sit in the long-haul business case too.
Good one ….. most of forecast and report by WB or IMF are like that …. A different outcome depending on the assumptions….. added to it is the dollar conversion and the PPP assumptions . On the jet fuel i being a retired oil man remember those days we export in a loss ….. it may take more time for this to settle …
Thanks for your comment!