Indian airline companies headed for $1.4 bn loss in 2014-15: CAPA

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Jul 30, 2014 23:21 IST

Indian airlines are headed for another large loss in 2014-2015 with risks peaking for some carriers, a report by aviation consultancy firm Centre for Asia Pacific Aviation (Capa) has said.

“Indian carriers expected to post losses of $1.3-1.4 billion (Rs7,807-8,408 crore) in 2014-2015, following on from a $1.7 billion loss last year,” Capa said. Over the last seven years Indian airlines have lost approximately $10.6 billion (Rs 63,663 crore) and the red ink is expected to continue, the report said.

Capa estimated that Indian carriers other than IndiGo, will require $1.6 billion (Rs 9,610 crore) of funding this year to stabilise their operations, let alone for investment in aircraft. Given the current environment this is likely to be a challenging exercise.

“Inability to access sufficient funds when required may impact the operational integrity and customer proposition of some carriers. Further foreign airline investment transactions involving existing Indian carriers consequently appear unlikely in the short term given recent losses and in light of the increasing intensity of competition in the market,” the report said.

Notifying aviation turbine fuel as a declared good, thereby reducing sales taxation on fuel to 4% from an average of 24%, would be the single greatest confidence boost to the industry, it said.

“Such a move would deliver an immediate reduction of 10-12% in airline operating costs, a significant benefit in such a low margin industry,” the report said.

From Around the Web
Sponsored by Revcontent

also read

Government aware of sectors generating black money, says Jaitley
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome