2011: Turbulent year aviation sector

If anyone has to recount the most significant event in the aviation space this year…it will probably be the grounding of Kingfisher Red. The rest of the year is better forgotten.
CNBC-TV18's Swati Khandelwal Jain takes a look at the turbulence that was 2011 for Indian airlines.
The Maharaja's fortunes have long eroded...but this year the royal shock came from the diminishing fortunes of the King of Good Times.
With Jet fuel prices heating up and profit margins cooling down ... KFA's debt levels reached boiling point in 2011.
- Since its inception in 2005, Kingfisher Airlines never made a profit. It's net loss stood at Rs 1,027 crore for the financial year ended 31 March 2011
And why just KFA...other than the unlisted indigo, which went international this year …every other airline posted heavy losses.
Jet Airways, India's top airline by market share, posted a net loss of $138 million for the quarter ended September 30.
- Budget airline SpiceJet also reported a net loss of USD 46 million.
- State-run Air India has a cumulative debt of USD 7.7 billion from aircraft acquisitions and short-term loans to maintain its operations and the government is considering ways to restructure Air India.
- According to analyst estimates, the cumulative debt burden of the three big Indian carriers-Kingfisher, Air India and Jet Airways-is a whopping USD 16 billion..
26/12/11 CNGC-TV18/moneycontrol.com

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Categories: Indian Aviation- In General Dec 2011