Jet Airways and its smaller rival SpiceJet reported quarterly losses on Friday as fare increases were not sufficient to cover high costs of operations.
Jet, which has agreed to sell a 24 percent stake to Gulf carrier Etihad in a USD 370 million deal, was optimistic of demand growth and said airlines were regaining their pricing power.
Airlines in India have increased fares in recent months after Kingfisher Airlines, once the country's No.2 carrier, stopped flying last October, burdened by its high debt and as its flying licence was suspended.
But high fuel costs and airport taxes, and a weak local currency still pose problems, and both Jet and SpiceJet cited these factors in their statements.
Jet said in a statement on Friday its planned deal with Etihad would bring "immediate revenue growth and cost synergy opportunities" and help strengthen its balance sheet.
25/05/13 Moneycontrol.com
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Jet, which has agreed to sell a 24 percent stake to Gulf carrier Etihad in a USD 370 million deal, was optimistic of demand growth and said airlines were regaining their pricing power.
Airlines in India have increased fares in recent months after Kingfisher Airlines, once the country's No.2 carrier, stopped flying last October, burdened by its high debt and as its flying licence was suspended.
But high fuel costs and airport taxes, and a weak local currency still pose problems, and both Jet and SpiceJet cited these factors in their statements.
Jet said in a statement on Friday its planned deal with Etihad would bring "immediate revenue growth and cost synergy opportunities" and help strengthen its balance sheet.
25/05/13 Moneycontrol.com
