Average earnings improve for airlines

New Delhi: Captain Gopinath and Vijay Mallya may have their cake and eat it too. Their tie up is not only expected to bring greater synergies between the two airlines but may also end up pushing the whole aviation sector into profitability.
Air Deccan has already started rationalising its fares and the result. Airlines are already seeing their yields improving by five per cent. Yields are the average revenue an airline earns on every seat in the aircraft.
Before the Jet - Sahara merger happened and Kingfisher decided to buy 26 per cent stake in Air Deccan, low cost carriers had average yields of Rs 2,300 per seat, which is now already up at 2,400 - 2,500 per seat.
However, at the present lean season when ticket prices are generally low, the real benefits of consolidation are expected to kick in by October when the peak season for airlines start.
Average fares through October to February will be up by Rs 250 - 300, even full service carriers will see their average yields up from Rs 4,500 per seat to atleast Rs 4,800 - 5,000 per seat.
06/07/07 Arijit Banerjee/NDTV.com

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

Categories: General Aviation Jul 2007