Jet, SpiceJet soar on misfortunes of rivals

Mumbai: Despite a bleak operating environment, Jet Airways and SpiceJet have flown into the black. The turnaround may have more to do with their embattled rivals than anything else.
Someone’s adversity almost always means another’s good fortune and this has certainly been the case with Jet Airways and SpiceJet, who have clawed their way back into the black after five consecutive quarters of losses. Whom to thank for such good luck? Why, crisis-ridden rivals Kingfisher Airlines and Air India, of course. The Vijay Mallya-promoted Kingfisher Airlines' sharp slashing of capacity and industrial action at the government-controlled Air India's long-haul route have helped both Jet and SpiceJet report higher yields respectively for both domestic and international operations.
In fact, improved first quarter results of Jet and SpiceJet have come despite considerable operating hurdles. The April-June quarter this year saw a 13 per cent rise in turbine fuel cost and the rupee depreciated 24 per cent versus the US dollar over the past year.
21/08/12 Abhineet Kumar/Business Standard

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Categories: Jet Airways Aug 2012, spicejet Aug 2012