Jet Airways, SpiceJet to turn profitable as Air India flounders

Jet Airways (India) Ltd., the nation’s largest carrier, and SpiceJet Ltd. may return to profit next fiscal year on rising travel demand even as state-run Air India continues to lose money with ballooning debt.
India’s private airlines may have a combined $300-million profit in the year starting April 1, according to Kapil Kaul, chief executive officer of the Indian unit of the Centre for Asia Pacific Aviation. The carriers are benefiting from rising demand on a global economic rebound and they have slashed flights, shed jobs, cut salaries and handed routes to discount units to cut costs.
“Things are looking better,” Naresh Goyal, chairman of Mumbai-based Jet Airways, said yesterday at an aviation conference in Hyderabad, India. “We all have been rationalizing our capacity, and 2010 will be better than 2009.”
By contrast, Air India may lose as much as 30 billion rupees ($655 million), according to Kaul. Like state-controlled Chinese carriers and Japan Airlines Ltd., Air India has sought government aid as it flies unprofitable routes and faces growing competition from overseas carriers including Singapore Airlines Ltd.
“Reducing losses in the next three to five years will be extremely difficult for Air India,” Kaul said. An Air India turnaround “is not going to be the story next year.”
07/03/10 mb.com, Philippines

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Categories: Jet Airways Mar 2010, NACIL Mar 2010, spicejet Mar 2010