Saturday, February 27, 2016

AirAsia loss narrows to Rs 32 crore

New Delhi/Mumbai: The losses of AirAsia India narrowed to Rs 32.7 crore in the December quarter, 23 per cent less than Rs 35.2 crore in the same period a year ago.

Revenue doubled to Rs 208 crore from Rs 62 crore in the same quarter last year, as the airline doubled its fleet to six aircraft.

AirAsia was unable to derive substantial benefits of lower fuel costs. On an operating level, the airline posted a loss of Rs 25.6 crore, against Rs 33.1 crore in same quarter a year ago.

During the quarter, all three listed airlines, IndiGo, Jet Airways and SpiceJet, made strong profits. IndiGo and SpiceJet made profits of about Rs 657 crore and Rs 238 crore, respectively, and Jet Airways posted a record profit of Rs 467 crore. AirAsia commenced operations in June 2015 and has six Airbus A320 aircraft. The promoters, including AirAsia Malaysia, Tata Sons and Telestra Tradeplace, have invested $30 million in the venture and are looking at a second round of funding as losses have eroded its equity capital. Tension between the promoters and senior management has been another concern for the airline.
27/02/16 Business Standard
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