Airlines eye buoyant December-quarter

New Delhi/Mumbai: Country's air carriers, who were battered by shrinking traffic and high fuel costs in the past two years, are now looking forward to an upswing in business, helped by the rebounding economy and events later this year, analysts say.
The upcoming festival season, the Commonwealth Games that India is hosting in October in New Delhi, and tourism will drive up air traffic as never before in the December-quarter, said Sharan Lillaney, an analyst with Mumbai-based Angel Broking, who expects July-Sept sales to be flat or marginally weaker than April-June because of rains.
"Indian aviation is entering a long-term and sustainable profitability phase," said Kapil Kaul, chief executive Indian subcontinent and Middle East, Centre for Asia Pacific Aviation (CAPA), an aviation consulting firm.
CAPA, in its mid-year review issued last month, said India's private airlines together could now post a higher than the earlier estimated profit of $250-300 million in 2010/11, although state-run Air India may post losses of $650-700 million.
A spike in fuel prices and a global downturn that resulted in lower travel spends had battered airlines globally over the past two years. The Indian aviation industry incurred a loss of about $1.75 billion in 2009/10, according to CAPA.
05/08/10 Reuters/Economic Times

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Categories: Indian Aviation- In General Aug 2010