Keskar: Indian airlines' losses likely to mount

India's airlines must increase their yields urgently if the country's industry is to avoid a collective $700 million loss for 2008, Boeing Commercial Airplanes Senior VP-Sales Dinesh Keskar told ATWOnline in Singapore yesterday.
"There have been signs of some fares increasing but not nearly enough to stem increasing losses," Keskar said. India's airlines lost $500 million over the past two years and he said losses are worsening this year. He added that the competition for economy travelers has resulted in fares declining up to the time of travel, resulting in passengers leaving booking to the last moment.
According to Keskar, a typical fare of $300 with surcharges often ends up at $100 the day of the flight. He also pointed to the mounting surcharges and taxes (up to $51 a flight) as a major impediment to travel.
Sources at the show told ATWOnline that some Indian carriers are selling off production slots and/or aircraft to reduce capacity. Keskar said this will help, as will the country's consolidation that will see six airlines merge into a collective three major carriers.
22/02/08 Geoffrey Thomas/ATWOnline, US

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