Airlines may gain altitude with $ fall

New Delhi: Exporters may be squealing, but the stronger rupee is likely to bring in some cheer for the red-ink spewing Indian aviation industry.
Reeling under huge losses expected to touch Rs 2,500 crore this year from Rs 2,200 crore last year the local aviation industry could end up making cumulative benefits of around Rs 500 to Rs 700 crore on an annual basis from falling dollar prices, say analysts.
Industry sources say all airlines, especially the domestic carriers, are expected to rake in sizeable savings on the salaries paid to expat pilots, aircraft and engine maintenance and overhaul charges, aircraft lease and finance payments and the forever-hurting aviation turbine fuel (ATF) costs.
These comprise more than 80% of the topline expenses for all airlines.
Analyst believe that the rupee benefit has been the best news for the otherwise loss-making aviation industry.
18/02/08 Chanchal Pal Chauhan/Economic Times

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Categories: Foreign Feb 2008, Indian Aviation- In General Feb 2008