(C)rude shock for aviation

New Delhi: The hike in crude oil prices by 10 per cent could add close to Rs 790 crore of additional losses on an annual basis for the domestic aviation industry, which in 2006 suffered losses of around Rs 1,975 crore.
Speaking to Business Standard, Jet Airways CEO Wolfgang Prock-Schaeur said if he was to pinpoint his single biggest worry today, it would be the rise in crude oil prices.
"Yes, you are right, we have been struggling with this issue for long. But, now if the industry does not get some relief on this front, we can't continue for long. We have to make our point crystal clear to the government, which has been telling us that various proposals are under consideration for a while now," he said, speaking for the industry in general.
He argued that the industry's survival could depend on this one single factor.
While the situation of the industry has been grim for a while, industry sources confirm that some of the lowest buckets of fares after the consolidation in the sector have now disappeared and that eventually - but not before the middle of 2008 - things may turn into a corner. But this situation could change if the crude oil prices hit new highs, say sources.
27/11/07 Anjuli Bhargava/Business Standard

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Categories: General Aviation Nov 2007