Indian airlines lose nearly $2 bn last fiscal year
India's airlines are expected to report a combined loss of about 100
billion rupees ($1.9 billion) for the previous financial year, India's
aviation minister Ajit Singh said.
Singh also said that all airlines operating in the country -- barring
low-cost IndiGo -- are making losses, in a written reply to parliament.
“The total operational losses for all the airlines for the period
2008-09, 2009-10 and 2010-11 are around 190 billion rupees...and 100
billion rupees loss is anticipated in 2011-12,” which ended in March,
Singh told parliament's upper house. The details were based on financial
data filed by airlines with the local regulator, Directorate General of
Civil Aviation (DGCA), Singh added. The sector showed a combined loss of
around 80 billion rupees in the previous fiscal year that ended March
2011, analysts said. India's airline sector, once one of the most
prominent symbols of the country's economic progress, has been battered
by high fuel prices, fierce competition and an economic slowdown.
Private airline Kingfisher -- which has shut down its overseas
operations and slashed domestic flights -- has been one of the worst hit
and desperately requires a cash injection to implement a turnaround
plan. India's biggest private carrier Jet and national carrier Air India
are also in the red.
India's government is yet to decide on clearing a proposal to allow
foreign airlines to pick up stakes in domestic carriers, seen as a
lifeline for some of those making losses.