Page 22 - AAA MARCH - APRIL 2015 Online Magazine

FEATURE AVIATION BUSINESS

CAPA estimates Jet Airways will post For a change, national carrier Air India
a profit, which excludes all extraordinary recorded a net profit of 146 million rupees in
one-time costs, including profits from the December, mainly driven by a healthy growth
slump sale of its frequent flier program. in both passenger and cargo revenue.
Both IndiGo and GoAir will be profitable Officials say the airline’s total revenue
in the third quarter, as per CAPA’s estimates. rose by 6.5% to 20.70 billion rupees during
“December was the best-performing month December 2014 as compared to 19.44
for all carriers — both yields and passenger billion rupees in the same period of 2013.
load factors rose due to SpiceJet’s “AI estimates passenger revenue of
challenges,” says Kaul. 165 billion during the fiscal 2014-15 and a
The dream flight of IndiGo continues total revenue of nearly 215 billion rupees.
with its market share rising to 36.1% in Together with our subsidiaries, the
December. President of IndiGo Aditya consolidated revenue is expected to touch
Ghosh attributes the airline’s success 250 billion rupees for this financial year,
to on-time departure, clean aircraft and ending March 31, 2015,” national news
good and clean flying experience. “We agency Press Trust of India says quoting
plan to stick to these and not try anything official sources.
different,” Ghosh says. Fledgeling low fare airline AirAsia
The airline has placed three large India, which was launched last year,
aircraft orders totalling 530 aircraft from hopes to break-even by May-June when
Airbus in the last nine years. it is likely to introduce its sixth airplane,
It is estimated that IndiGo will chief executive Mittu Chandilya says.
continue to outperform and its profit will The low-cost carrier AirAsia India
rise significantly in 2014-15 compared to and full-service Vistara are, however,
2013-14. enthused by the government’s proposed
Another loss-making low-cost carrier move to replace the ‘5/20’ rule, which Most of the debt-ridden
GoAir is also expected to record its makes it mandatory for airlines to have carriers are likely to report
best-ever result, subject to the fourth five years of domestic operations and a profits on the back of falling
quarter (January-March) performing to 20- aircraft fleet to become eligible for global crude prices and
expectations, CAPA says. flying international. growth in passenger traffic

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