Airlines seen posting huge Rs 7,000-cr loss this fiscal


The total industry loss for the past fiscal is estimated at around Rs 10,000 crore.
In the four years to March 2010, “it is estimated that Indian carriers will have accumulated operational losses in excess of Rs 26,000 crore,” CAPA said in its recent report ‘Indian Aviation: A Review of 2009 and Outlook for 2010.’

The agency also said the low-cost airlines, an operating model which did not exist in the domestic market until six years ago, could account for almost 70 per cent of domestic capacity within the next two-three quarters.

“This is due to the decision taken by carriers such as Jet Airways and Kingfisher Airlines to reconfigure the majority of their domestic aircraft to operate no-frills service. Air India is also planning to follow suit,” it said. The report also said there has been a clear recognition that there is a limited market for full-service air travel, particularly the business class, beyond the key metro routes. “The full-service airlines may in future be restricted to just a handful of services, or may even disappear entirely,: CAPA report said.

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