Indian airlines to return to profit: Report

New Delhi: India's private airlines can look forward to a return to profit in the next financial year after two turbulent years of losses, an industry report forecast Thursday.
With the economy rebounding, private carriers are expected to post a total profit of 250 million dollars to 300 million dollars in the next fiscal year starting in April, the Centre for Asia Pacific Aviation said in a report.
The carriers include Jet Airways, SpiceJet, Kingfisher Airlines Ltd. and Indigo Airlines.
"After a turbulent couple of years, 2010 should be a more positive year for Indian aviation, provided that the airlines can remain disciplined on costs, capacity and pricing," the aviation consultancy said.
But state-run flagship carrier Air India will remain in the red next year, the Sydney-based consultancy said, dragged down by high operational costs and a fall in passengers.
"Air India will continue to have cash deficits for the next five to seven years, which could cumulatively amount to four-to-five billion dollars, the report said.
Total airline losses for the current fiscal year are expected to total 1.5 to 1.6 billion dollars of which Air India will account for at least half, Kapil Kaul, chief executive in India for the Singapore-based Centre for Asia-Pacific Aviation, told AFP.
The combined losses have narrowed from last year's two billion dollars.
24/12/09 Economic Times

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Categories: Indian Aviation- In General Dec 2009