Wednesday, August 09, 2006

Ailing airlines bank on rising local traffic

Mumbai: Riding high on the growth in domestic traffic, loss-riden start-up airlines are confident to be back in the black in two years.
Analysts said domestic passenger traffic last year grew by 25 per cent to 25 million passengers.
While the Wadia group-promoted GoAir claims that it will make profit by end of the financial year 2006-07 , SpiceJet, Kingfisher Airlines and Air Deccan are also expected to be in black in 2007-08.
Meanwhile, full service airline Jet Airways, which commenced operations in 1993, has reported a net loss of Rs 44.98 crore for the first quarter of fiscal 2007 despite 24.78 per cent growth in total income from operations at Rs 1,678.76 crore.
Airline industry sources point out that the expected profits by the next one year will be mainly volume coupled with increase in price.
09/08/07 P R Sanjai/Business Standard
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