Airlines scale back capacity addition

Mumbai: Wiser after their experience of last year, when an economic downturn rendered large capacity additions redundant, Indian airlines have significantly scaled back increases in both fleet size and seats for the next fiscal year.
Domestic airlines are expected to add just 12-15 planes to the existing 240 in 2010-11, and add 5-6% more seats, against the 15-20% seat additions so far in this fiscal year.
The airlines have deferred taking delivery of other planes they had ordered earlier.
Kingfisher Airlines Ltd, the second largest carrier in the country, will only add a couple of planes.
“Between January to March 2011, there will be two additions—one ATR (turboprop plane) and one A320 plane,” said Prakash Mirpuri, vice- president (corporate communications) at UB Group, the parent company.
On Wednesday, Kingfisher’s chairman and chief executive Vijay Mallya, announcing a revival of the airlines’ overseas expansion, said it may add more planes sooner than planned to take advantage of an improving economy.
India’s largest airline by passengers carried, Jet Airways (India) Ltd, is not planning any major additions and all new purchases or leases will be only to replace ageing aircraft, two executives said. They declined to be named as they are not official spokespersons for the firm.
State-run National Aviation Co. of India Ltd, which operates Air India, inducted 29 aircraft in 2009, also primarily to replace its old planes.
10/02/10 P.R. Sanjai/Live Mint

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Categories: Indian Aviation- In General Feb 2010