Airlines flex fleet muscle, fret over fuel prices

Mumbai: The Indian aviation industry will double its fleet size to over 500 aircraft by 2010 and is expected to fly around 80 million passengers by 2020 from about 50 million at present, a Capgemini report said.
According to the report, the industry will grow at the rate of 24 per cent in 2008, despite the high cost of aviation turbine fuel (ATF).
However, the global consultancy firm said infrastructure gaps and strict government regulations would continue to affect the business. The industry suffered losses of $500-550 million in 2006-07.
Competitive air fares and rising ATF prices are eating into the margins of airlines, and have exposed the sector to intense competition.
The airlines are looking for all possible ways to fight rising fuel charges. ATF prices account for about 35-40 per cent of the operating cost of Indian airlines compared with 20-25 per cent abroad.
18/02/08 Anirudh Laskar/The Telegraph

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Categories: Indian Aviation- In General Feb 2008