FORUMula1.com

[acosmichippo]

i think FI's budget is estimated to be 60-80m (and that estimate was before the Sahara deal), so I don't think 700k is going to put them in danger, but I guess it may put a hamper on some development.

[nubenow]

Mallya will lose heaps of money, but I still don't think the F1 team will fold. They do have a good number of sponsors don't they

Actually so far as I can see, all their sponsors are Mallaya associated owned companies?

The real *threat* to their existence I would imagine is their association with the Sahara Group. It seems Sahara became *shareholders* in Force India through a default on loans made to Mallaya by them and they have quite openly said they have no interest in motor racing, least of all F1. This company's business model is corporate raiding! But Mallaya may not have had too much choice in the matter in an effort to keep the failing airline aloft.....

"It's ok to swim in the water when you know there are sharks out there. The key is to know exactly where they are."

[madbrad]

Do any airlines make a profit?

[Hammer278]

Do any airlines make a profit?

As far as I know, amid rising fuel prices AirAsia has managed to grind out profits for the past 6 quarters while SIA (Singapore Airlines) is currently #1 in the world. They SHOULD be in the black end of the profit margin sheet.

[madbrad]

They try to make up losses by charging for every little thing. First it was no free checked bags and now it's $100 for a carry on! Heck it may be cheaper for me to buy that carry on a seat!

[Hammer278]

Well..I don't agree with how they operate either. They are borderline ethical IMO. I have a friend who works in the company and apparently mid/junior level staff are grossly underpaid! Guess this is what it takes to run a 'profitable' airline?

[mugshot]

From what I've read, they fully expected to have to pay this 700k+ bill (It's not like you just forget to pay a bill like that), but were just using the courts to delay payment. Of course that kinda backfired since they have to pay interest and damages too.

..... and court fees....

Thats the bit I dont get, if they were using the courts to delay payment then why do it as the legal side is costing them dear!