Domestic airlines enter choppy weather

full service carrier Jet Airways’ April-June 2011 performance is a classic example of what is happening in the Indian aviation industry. India’s biggest private airline reported a robust increase in yield in the quarter ending June but suffered a net loss of Rs 123 crore compared with a net profit of Rs 3.52 crore a year earlier. Similar was the fate of the other private sector biggie Kingfisher Airlines, not to speak of the state-run Air India.
As per information given by civil aviation minister Vayalar Ravi to Parliament on August 2, 2011, national carrier Air India incurred a loss of over Rs 5,500 crore during the 2009-10 fiscal followed by Kingfisher and Jet at Rs 1,239.30 crore and Rs 467.60 crore, respectively. Besides, another private airline operator Go Air incurred a loss of Rs 65.50 crore in the period.
Thankfully for the industry, not all airlines have gone the full-carrier’s way. Low-cost carrier IndiGo,which has made giant strides, returned with a huge profit of Rs 484.70 crore in the same fiscal, followed by its rivals SpiceJet at Rs 67 crore and JetLite Rs 46.20 crore.
Why such behaviour by the industry? Higher yields, one may say, should result in better revenue. But not necessarily in the case of aviation industry. Also, this sort of performance has come in the April-June quarter, considered the second best by the industry after October-December quarter dominated by the holiday-festival season.
08/08/11 B S Arun/Deccan Herald

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Categories: Indian Aviation- In General Aug 2011