Friday, January 26, 2007

Deccan lands profit, flown by 5 engines

Mumbai: An extraordinary, non-aviation income of Rs 135 crore, doubling of peak season traffic, reduced “cost per unit” due to an increase in the scale of operations, lower jet fuel prices, and fuel and congestion surcharges.
These are the five engines that helped Deccan Aviation post its first profit since its June 2006 IPO last year, in the quarter ended December 31, 2006.
Without the non-aviation inflow, the airline would have posted a net loss of Rs 125.36 crore.
Deccan’s net profit stood at Rs 9.64 crore for the quarter.
The extraordinary gain came by way of a second tranche of $30 million accrued in the quarter following pledging of its right to buy 60 Airbus SAS planes to Investec Ltd and HSH Nordbank AG.
The total pledge value is $100 million, payable to Air Deccan in four tranches. The first tranche came in during the June-September 2006 quarter.
25/01/07 Praveena Sharma/Daily News & Analysis