All Posts Tagged With: "Aviation"

Measures taken by Indian Carriers towards the operating cost

The stock market is increasingly getting jittery about the bad news swamping the economy. A host of factors such as inflation, slump in industrial output, higher oil price and so on, is keeping the market on tender hooks. Also, Indian carriers expect to lose up to Rs.10,000 crore, this fiscal year as oil is showing no signs of cooling off and hovering around $146-147.

July 19th, 2008 | Shabbir Bhimani | 0 comments | Continued

Yet another airline, that takes cost cutting strategy more seriously

Jet’s low cost subsidiary, “JetLite” will stop serving free water, toffees and snacks on its flights. This action will start with effect from August 8, 2008 onwards. Hence, the statement in which the company once strongly believed is no more a concern to them now. The slogan says: “A passenger is like a guest at home who can’t be charged for the food served on board.”

July 16th, 2008 | Shabbir Bhimani | 0 comments | Continued

Looking into the airline industry which is in doldrums

The Indian aviation industry is passing through a bad phase, where all airlines are reporting mounting losses due to Jet fuel rising prices and due to steep fall in load factors. The main culprit is the ATF rise spike. However, the airline itself is also responsible for the present condition.

July 12th, 2008 | Shabbir Bhimani | 1 comment | Continued

Air India seeks debt equity plan

Air India is seeking for a mix of debt and equity. Its paid up capital is nearly Rs.150 crore while the authorized capital is Rs. 1,500 crore. Air India wants the paid up figure to be closer to the authorized one which will require a combination of nearly Rs.1300 crore as equity. Also, it requires a hefty loan component.

July 12th, 2008 | Shabbir Bhimani | 0 comments | Continued

It’s high time to introduce price discipline in airlines

GoAir and Spice Jet is likely to offer airfares that are going to be as low as Rs. 0-99 as the basic fare. Since, the off peak season will be taking off between July and September, airlines are getting ready to fight yet another hurdle. It’s about the hurdle of low passenger load factor. Passenger load is expected to come down, anywhere from 10 per cent to 15 per cent.

June 15th, 2008 | Shabbir Bhimani | 0 comments | Continued
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