Despite slow growth, airlines gear up for a busy winter

New Delhi: The loss-laden airline industry is expecting good days ahead going by their applications from airlines for the forthcoming winter schedule. Scheduled carriers such as Jet Airlines and Kingfisher Airlines plan to operate 11,486 flights per week this winter, 8.11% more than the previous year.
This comes at a time when the domestic air traffic is registering double-digit negative growth and airlines are forced to cut flights to save cost. It is believed that domestic carriers are losing thousand of crores on account of excess capacity and high aviation turbine fuel (ATF) prices.
“We have cleared the winter schedule, approving 11,486 flights per week. While approving the schedule, we considered the capacity of airports and the historicity of the slots utilisation by airlines. Airlines were also given new slots depending upon capacity available,” an official in the ministry of civil aviation said. “Schedules of those planning to start operation in the later part of the winter season was not considered. It would, however, be considered later, based on capacity available,” he added.
Domestic airlines have cut about 20% of their flights in a bid to save costs and reduce losses. The Indian airline industry lost Rs 4,000 crore in 2007-08 on account of high fuel price, excess capacity and under-utilisation of their resources. The total loss of the airline industry during the current financial year may be in the excess of Rs 8,000 crore.
24/10/08 Nirbhay Kumar/Economic Times

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Categories: Indian Aviation- In General Oct 2008