Monday, 26 December 2011

Debt Deep to Fly High..?

A sneak peek at the Top Airlines of India

 
Rank
Airlines
Market Share
Year of Est.
Passengers
Key People
1
Jet Airways
24.8%
1993
55.88 lakh
Naresh Goyal( founder chairman)
2
Kingfisher
16.7%
2003  
63.06 lakh  
Vijay Mallya, Chairman
3
Indian Airlines      
16.6%
1953
41.97    

4
 Air India    
16.6%

1,98,949    

5
Air India Express
16.6%
2005
1,76,549   

6
IndiGo                  
19.6%
2006
46.16 lakh
Aditya Ghosh,President
7
Spicejet               
16.1%

 31. 87 lakh
Kapil Bhatia,Executive chairman
8
GoAir                     
5.3%
2004
16.51 lakh   
 Jeh Wadia, Managing Director


Recently, Kingfisher was in news for its high worth of debt of around 7,500 crores.
Air India too has had the same story.

But thats not the case with the LCC's ie Low Cost Carriers..


If we look at the data of their operating profits we see:-
OPERATING PROFIT FOR:-           (figs. in crores)
YEAR
JET
KINGFISHER
SPICEJET
2007
27.94
-419.58
-70.74
2008
-253.06
-188.14
-132.39
2009
-253.06
-1,608.83
-340.44
2010
-467.64
-1,647.22
67.03
2011
9.69
-1,027.40
101.16

 
Red - Kingfisher
Blue- Jet
Green- Spicejet

That Low cost airlines such as Spicejet are still flying better.

The prime reason for this is the price of crude which is more than $100 per barrel.
Eventually Mr. Mallya has asked from govt to import it on his own to save sales tax.

But is it that in India LCC’s can only afford it survive and high end dare to see the light of the day..?

Seeing the trend of operating profit over the years and ever increasing air traffic we can hope to see some good news from them..!               

 Sources- 

http://www.google.com
http://www.money.rediff.com

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