After having posted a loss of Rs 171 crore in what is seasonally a strong Q3 , SL Narayanan, group chief financial officer, Sun Group, says the country needs a healthier civil aviation industry. Sun Group is the promoter of SpiceJet airlines. Speaking to CNBC-TV18’s Latha Venkatesh and Sonia Shenoy, Narayanan says that the company was hit by a double whammy of rupee depreciation and low traffic. “The industry is going through challenging times, and yields in Q3 went up only by 3 percent. We were hit by 15 percent depreciation loss,” says Narayanan who adds that SpiceJet’s maximum costs are dollar denominated, but the airline has been unable to pass the cost to the customers . On his outlook for the future, Narayanan says that the addition of two new rival competitors that, “are more well-capitalized competitors,” will only add more pressure on existing companies as their strategies are likely to be cost-competitive.
18/02/14 CNBC-TV18/Moneycontrol.com
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18/02/14 CNBC-TV18/Moneycontrol.com
