Mumbai: As debt-laden Kingfisher Airlines' troubles mount, its rivals have a cause to cheer as they begin to gain market share and pricing power. The airline, which is now operating only 25% of its 64-aircraft fleet, has allowed domestic carriers like Jet Airways and IndiGo to increase yields or the revenues they generate per seat for every kilometre, thereby signalling a good fourth quarter and a possible return to profitability if the oil prices stabilise after some correction, industry analysts said.
A Jet official had alluded to this windfall because of Kingfisher's trauma as early as November last year when in an earnings call he said that while his airline would not like to be a "vulture", it would benefit from Kingfisher's inability to operate as per schedule. It has helped Jet in upping yields by at least 15% and also it would definitely benefit the carrier as the passengers begin shifting to Jet, among other airlines.
The Indian aviation sector is expected to post a combined loss of $2.5 billion in FY11-FY12, but it might see one of its strongest fourth quarters in FY12, says a report by Kotak Institutional Equities.
22/03/12 Manisha Singhal & Anindya Upadhyay/Economic Times
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