Airlines brush aside fears of slowdown

Mumbai/New Delhi: Unfazed by mounting losses and the slowest growth in three years in December, India’s airlines say they are now embarking on a phase of profitable growth and expect to turn profitable in 2008-09.
The turnaround comes in the context of slower passenger growth, down to 25% a year from the heady 40% seen in the past two years—in December, the growth was 16% as compared to a year ago—and a reduction in the number of planes joining airline fleets.
The predictions of imminent profitability come at a time when the combined losses of domestic airlines are estimated to have risen some 50% to $750 million (Rs2,963 crore) in 2007-08 over 2006-07. Airline executives blame the high cost of jet fuel (commonly referred to as aviation turbine fuel or ATF), unfilled seats on planes, and tickets priced below cost as firms expanded reach and fought for shares in a fast-growing market for the losses.
18/02/08 P.R. Sanjai and Tarun Shukla/Livemint

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Categories: Indian Aviation- In General Feb 2008