Deccan Aviation narrows losses with plane sales, higher fares

New Delhi: Bangalore-based DeccanAviation Ltd, which runs the largest low-cost airline in India, has reported losses of Rs199.6 crore in the January-March months, 6.6% less than the year ago losses, after average ticket realizations expanded more than 36% and sale-and-lease-back deals on two planes in its fleet buoyed results in the third quarter of the company’s fiscal year.
The stronger operations at Deccan, despite lower seat occupancy on its flights, helped it offset record fuel costs, Ramki Sundaram, its officiating chief executive, said. Deccan, into which Kingfisher Airlines Ltd, a full-service carrier controlled by UB Group, is being merged, reported total revenues of Rs607.66 crore in the latest quarter, up one-third from Rs457.45 crore in the March quarter of 2007. The revenues were helped by Rs25 crore from sale and leaseback arrangements.
The performance in the January-March period takes the losses of Deccan Aviation— before the Kingfisher Airlines merger—in the three quarters gone by to Rs643.64 crore. Deccan, which accounts for about 14.6% share of the domestic air passenger market, is the first of the three listed airline companies to announce results for the March quarter.
22/04/08 Tarun Shukla and P.R. Sanjai/Livemint

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Categories: Deccan Apr 2008, Kingfisher Apr 2008