Another thing we should not miss about the company is it’s aspiration in pursuing growth.
See, these snapshots from last Q call.
These are some bold ambitions. If the company succeeds in Singapore which seems to have one major airport (Changi), has a monthly traffic rate of ~5 Million. So total maket size may be about a qtr or 20% of India’s air traffic. But it’s a prestigious airport with very high value footfall. Singapore just replaced Japan as the most valuable passport. If company can make a mark in such a prestigious market, more doors can open.
We live in a time, when lot of business decisions are being influenced by geo politics. And fortunately or unfortunately the two major players are and US – Priority Pass and China Dragon Pass . There could be a genuine case for a 3rd player to provide an alternative and Dreamfolks is nicely placed for that. Let’s see if they make it count.
Overall, my point is, don’t get too negatively influenced by news of some credit card withdrawing the lounge facility to it’s least favorable customers. That’s par for the course. Keep an eye on the big picture. This service is not going outdated just because we saw surge in new first time credit card users choking the lounges for few qtrs and then abandoning the card. The utility value of the service goes much beyond that. Stay on till the company is showing growth.
Disc: Invested, will consider adding, if it correct meaningfully.
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