Air Deccan post losses of Rs. 340 crore

Air Deccan post losses of Rs. 340 crore

Air Deccan is the kind of budget airline travel in the Indian market. However, the company is not doing that good with their revenues as they have just posted net loss of Rs. 340 crore for the 15 months ended June 30, 2006.

The company has also signed a term sheet to raise $100 million to take care of its contingencies. This term sheet had been signed with a consortium of bankers in Europe for funds.

Air Deccan has suffered badly from the rising prices of aviation fuel in the country. In addition, the company just recently introduced 20 new aircraft in their fleet.

They expect things to get better now that the prices of the aviation fuel have come down. Air Deccan Director (Finance), Mohan Kumar spoke on this report: “However, the benefit of higher yields on the new routes, which account for over 58 per cent of all routes as of now, will flow in the next few quarters.”

Air Deccan Managing Director G. R. Gopinath added: “The strong market share (21.2 per cent) is of strategic advantage, as it will be the springboard for our future expansion, growth and profitability, besides insulating us from the turbulence in the domestic aviation industry.”