Expect airlines to fly back into profit (Live mint.com 1st Jan 2008) Rising ticket prices, high seat occupancy rates and slower induction of planes into fleets may help India’s domestic airlines—competing tooth-and-nail in the past few years to grab shares in a market that is almost doubling every two years—record a small profit for the just ended fiscal third quarter.
Industry executives and analysts admit the results of the quarter ended 31 December, traditionally the busy season because passenger traffic climbs sharply over the holidays, may not be sustainable. But rising ticket prices, a result of consolidation in the industry, is likely to help these airlines, even in the long term, to post profits. More
Will airlines pass on gains from lower fuel prices?(The Hindu Business Line 1st Jan 2008)Domestic flights could cost less in the New Year. With aviation turbine fuel costing 4 per cent less in January vis-a-vis the previous month, domestic airlines indicated on Monday that they could look at reducing the fuel surcharge on some routes.
“The surcharge is likely to come down. It would be difficult to quantify the decline since on long haul flights most airlines recover their costs while this is not the case on flights which are of less than 90 minutes duration,” the Executive Chairman of low cost airline SpiceJet, Mr. Siddhanta Sharma, said. At the moment, most airlines impose a surcharge of Rs 2,025 to offset the increasing ATF prices. More
Industry executives and analysts admit the results of the quarter ended 31 December, traditionally the busy season because passenger traffic climbs sharply over the holidays, may not be sustainable. But rising ticket prices, a result of consolidation in the industry, is likely to help these airlines, even in the long term, to post profits. More
Will airlines pass on gains from lower fuel prices?(The Hindu Business Line 1st Jan 2008)Domestic flights could cost less in the New Year. With aviation turbine fuel costing 4 per cent less in January vis-a-vis the previous month, domestic airlines indicated on Monday that they could look at reducing the fuel surcharge on some routes.
“The surcharge is likely to come down. It would be difficult to quantify the decline since on long haul flights most airlines recover their costs while this is not the case on flights which are of less than 90 minutes duration,” the Executive Chairman of low cost airline SpiceJet, Mr. Siddhanta Sharma, said. At the moment, most airlines impose a surcharge of Rs 2,025 to offset the increasing ATF prices. More
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