Jet Airways sees gloomy skies ahead

Mumbai: Jet Airways, which has flown into losses in the last quarter, has painted a gloomy picture of the industry saying that all airlines together will make heavy losses and time is ripe for consolidation.
Addressing the 14th annual general meeting of shareholders, Jet Airways chairman Naresh Goyal said some airlines are offering seats at prices which do not even cover the cost of operations, resulting in increased losses.
Jet had posted a loss of Rs 44 crore in the quarter ended June this year. Other airlines like Air Deccan are also making losses. India’s number 1 airline in terms of market share, Jet is competing with a host of new airlines which are eating into its market market share. No frill airlines are offering seats that are cheaper than railway fares, giving established players like Jet and Indian Airlines a run for their money.
Thus, he said, unless critical issues are addressed, short-term disruptions will be a feature of the domestic aviation industry for the next 12-18 months.
20/09/06 Indian Express

To Read the News in full at Source, Click the Headline