GoAir to drop 300 flights to reduce losses

Mumbai: Come August and the Wadia family-controlled company is likely to cut down its total monthly flights to 500 from the existing 800, a 37.5% drop, said sources. The company has already nearly halved operations last month. When contacted, GoAir vice-president (marketing) Neeraj Kapoor declined to comment.
An email query sent to GoAir on Wednesday did not elicit response. Emkay Global Financial Services research head Daljeet S Kohli said: “GoAir is struggling to compete with Deccan and JetLite.” All low-cost carriers are incurring huge operational losses due to high ATF prices, he added.
According to a recent Crisil research report, sharp increase in crude oil prices in the first half of 2008 has led to a corresponding rise in the price of ATF, forcing the airline companies to incur heavy losses.
Industry experts said several low-cost carriers have decided to cut losses through route-rationalisation and deferment of aircraft acquisition following the hike in ATF prices.
11/07/08 Mithun Roy/Economic Times

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Categories: GoAir Jul 2008