Train145;ing146; Day

Salim may have trumped all suitors for Bengal8217;s heart bid in the battle for the Kolkata artery;

Salim may have trumped all suitors for Bengal8217;s heart bid in the battle for the Kolkata artery; Anil Ambani seems to be moving ahead of the competition. The dynamic tycoon is in talks with TGV of France to bid for the Rs 3,000 crore LRTS project in Kolkata. People in the know are saying that Reliance Energy might create a special purpose vehicle that will then incorporate the advanced technology of the French company into the project. The West Bengal Government has appropriately insisted that the bid be supported by a proven technology already in use in some part of the world. The French option has a reputation for being the best technology in the world regarding light railway transit systems. The business magnate is focused on the Kolkata project even as the the metro rail project he has undertaken in Mumbai is facing the heat from detractors, on the grounds that it will cost twice that of the Delhi Metro. However, the tycoon believes he could have a better chance than the rest of his competitors. Though Siemens of Germany and Amex International from the Czech Republic are also bidding, locals believe their bids may lose steam when compared to Reliance because they are not currently willing to finance the project fully. All that remains now is to see whether Anil can make it to the finish line or will the Reliance engine run out of steam before that.

Time for take-off

Rahul Bhatia, the man who shocked industry peers by his 100 A320s order, is the latest airline tycoon to take to the skies. The uniquely low-key inaugural flight from Delhi to Guwahati was suitably combined with a mantri-studded launch party. Clearly, this was the kind of combination that Bhatia preferred. A booming domestic aviation sector, more demand than supply, 8216;have disposable income-will travel8217; consumers are all great factors of the currently strong market potential that make IndiGo8217;s targets of five lakh passengers by this year-end with a fleet of six Airbus A-320 aircraft look achievable. Whispers in the business also suggest that IndiGo8217;s big asset is the top class management team it has managed to assemble. But high operational costs, 8216;what8217;s-the-best-deal8217; oriented customers, competition from the likes of Kingfisher Airlines, Spicejet, Air Deccan and the fact that there are many more players waiting in the wings, will make Rahul8217;s business even more cut throat. The tycoon8217;s got an enviable mix going8212;a new A 320 every month, a management team that8217;s done this before 038; successfully, and deep pockets that are vital to keep the airline going, at a time when fare wars have led Air Deccan and Jet to declare financial turbulence. Ultimately, getting the basics right8212;low fares, on-time flights, and building a brand that people aren8217;t embarrassed to fly with8212;all will make for a success story that the low-cost category desperately needs, to win some respect among frequent fliers. What will be interesting is the tycoon8217;s take on bundling and cross-selling products to IndiGo customers from across the several businesses that Interglobe operates 8211; that8217;s when the big payback happens!