Airlines’losses might double

New Delhi: With rising aviation turbine fuel (ATF) prices and declining number of passengers due to subsequent airfare hikes, airline operators have reported a combined loss of Rs 4,000 crore in the financial year 2007-08.
Stating this after a meeting with airline operators, the civil aviation secretary, Mr Ashok Chawla, said the loss might double during the current financial year if the rise in oil prices continued. In fiscal 2006-07, the airlines had suffered a combined loss of Rs 2000 crore.
“As oil prices are at all-time high, airlines are finding it difficult to make both ends meets. In fact, there are substantial losses being reported by the airlines in India,” Mr Chawla told reporters.
Sources said that airline operators, during the meeting, had sought government’s intervention in the form of some relief for the sector so that they could sustain the current financial crisis.
The ministry, on its part, has sought more specific details from the airlines about the losses they are suffering so that it could be prepared as a representation.
04/06/08 The Statesman

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Categories: Indian Aviation- In General Jun 2008