Indian aviation needs to focus on basics to take off

New Delhi : After being in trouble for more than a year and losing Rs 10,000 crore, the Indian aviation industry is looking up.
It should continue doing so if airlines refrain from adding ‘unnecessary’ capacity and getting into another fare war.
The losses of three listed airlines — Jet Airways, Kingfisher Airlines and SpiceJet — in the third quarter of this financial year fell by 37 per cent to Rs 205 crore from Rs 645 crore during the same period last year.
SpiceJet and Jet Airways improved their financials and incurred profit but Kingfisher increased its losses. SpiceJet had a loss of Rs 17.96 crore during the same period last year and Jet Airways then had a loss of Rs 214.18 crore.
Kingfisher increased its losses to Rs 420 crore from Rs 413 crore during the same period last year.
The airlines that managed a profit did so because of constant effort to cut flab. “The airlines have been cutting flab for around a year and it has paid. Kingfisher has made operational profit and losses might have come from international operations, which they started recently,” said Kapil Kaul, India head of the Cen-tre for Asia Pacific Aviat-ion.
“Increasing their yields will be the key to growth,” said Rajeev Batra, executive director, KPMG, the financial and business advisory agency.
27/01/10 Mihir Mishra/Business Standard

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Categories: Indian Aviation- In General Jan 2010