Consolidation benefits miles away for carriers

Bangalore: Are airlines flying towards profits after the recent consolidation and rupee appreciation?
Industry experts and airline operators are divided. Some say the situation has not changed much as the excess capacity in the market continues to drive down the yield, while others say they are awaiting the results of the route and fleet rationalisation to kick in.
SpiceJet Ltd CEO and chairman Siddhanta Sharma believes the effects of route and fleet rationalisation by Jet-Sahara and Kingfisher-Air Deccan are eight months away.
The only immediate impact of Kingfisher’s Vijay Mallya taking over Air Deccan is that fares closer to the date of travel have firmed up marginally, but advance sales fares are still being discounted as much as before.
Leading central reservation system (CRS) Amadeus India’s corporate marketing and communication vice-president Karun Budhiraj also does not expect the aviation industry to regularise soon.
21/06/07 Praveena Sharma/Daily News & Analysis

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Categories: General Aviation Jun 2007