The streaks of red will be far thicker this year

Bangalore: If consolidation in the aviation industry was supposed to stop airlines from bleeding, it's not happening.The current performance of the industry is only signalling a further deterioration in its financial health.
Ankur Bhatia, executive director of travel conglomerate Bird group, estimates that the losses for this fiscal year could be closer to Rs 3037.50 crore ($750 million), 50% higher than last year's Rs 2,025 crore ($500 million).
According to him, one of the primary reasons for this is the rampant capacity addition on already over-served, metro to metro routes.
Bhatia said budget airlines like SpiceJet, IndigGo and GoAir, which are independent players, continue to dictate the direction of price in the industry.
Bhatia does not see a turnaround for the industry in the foreseeable future.Bhatia, who is planning to start his own airline by the end of 2009, is currently evaluating various business models.
He is considering a regional airline in the North and is in the process of deciding the aircraft type.
31/08/07 Praveena Sharma/Daily News & Analysis

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Categories: General Aviation Aug 2007