Indian Aviation News
Combined profit of $350-400mn for Indian carriers this fiscal news
by Bipin Shah Self Employed
Bipin Shah 
Self Employed
Though the outlook for India's private airlines is rosy, with likely combined profits in the region of $350-400 million in the fiscal year beginning 1 April, the same is not true for state-owned Air India, which is likely to post a loss of $1-1.25 billion, according to consulting firm Centre for Asia Pacific Aviation (Capa).
Capa's projections are part of its 2011-12 outlook for the Indian aviation industry, which it released on Monday.
Last year, Capa projected a profit of $250-300 million for private carriers in the financial year ended 31 March, and a loss of $650-700 million for debt-laden Air India.
Amongst other matters, Capa says Indian carriers are likely to place orders for 200 new aircraft this fiscal, with a list price of $11-12 billion. These will include 125-150 narrow-bodied planes, 30-50 smaller planes and 10-15 wide-bodied planes for long-haul international flights.
These acquisitions will be in addition to the massive order placed in January this year for 180 narrow-bodied planes by IndiGo. The order is worth $15 billion at list prices.
Capa also said two budget carriers were likely to launch initial public offerings (IPOs) in the fiscal year. It, however, did not name these carriers.
"We see high growth and high cost pressures like airport charges, fuel, ground handling," said Kapil Kaul, head of Capa's India unit. He said estimates were based on oil prices remaining at $80-95 a barrel.
"But debt is big concern. Airlines' debt is expected to increase from $15-16 billion in 2010-11 to $20 billion."
While private carriers are reporting profits or narrowing losses for the third quarter of the last fiscal, Air India has by now accumulated Rs13,300 crore in losses since its merger with Indian Airlines in 2007. The flag carrier says it expects to turn profitable by 2014 through a financial restructuring plan.
Capa's outlook is based on an estimated domestic capacity growth of 12-14% and local traffic growth of 17-18%, possibly rising to 20%.
International passenger numbers, which grew approximately 10% last year, are expected to increase 10-12% over the next 12 months, it said.
Apr 8th 2011 00:50
Self Employed
Though the outlook for India's private airlines is rosy, with likely combined profits in the region of $350-400 million in the fiscal year beginning 1 April, the same is not true for state-owned Air India, which is likely to post a loss of $1-1.25 billion, according to consulting firm Centre for Asia Pacific Aviation (Capa).
Capa's projections are part of its 2011-12 outlook for the Indian aviation industry, which it released on Monday.
Last year, Capa projected a profit of $250-300 million for private carriers in the financial year ended 31 March, and a loss of $650-700 million for debt-laden Air India.
Amongst other matters, Capa says Indian carriers are likely to place orders for 200 new aircraft this fiscal, with a list price of $11-12 billion. These will include 125-150 narrow-bodied planes, 30-50 smaller planes and 10-15 wide-bodied planes for long-haul international flights.
These acquisitions will be in addition to the massive order placed in January this year for 180 narrow-bodied planes by IndiGo. The order is worth $15 billion at list prices.
Capa also said two budget carriers were likely to launch initial public offerings (IPOs) in the fiscal year. It, however, did not name these carriers.
"We see high growth and high cost pressures like airport charges, fuel, ground handling," said Kapil Kaul, head of Capa's India unit. He said estimates were based on oil prices remaining at $80-95 a barrel.
"But debt is big concern. Airlines' debt is expected to increase from $15-16 billion in 2010-11 to $20 billion."
While private carriers are reporting profits or narrowing losses for the third quarter of the last fiscal, Air India has by now accumulated Rs13,300 crore in losses since its merger with Indian Airlines in 2007. The flag carrier says it expects to turn profitable by 2014 through a financial restructuring plan.
Capa's outlook is based on an estimated domestic capacity growth of 12-14% and local traffic growth of 17-18%, possibly rising to 20%.
International passenger numbers, which grew approximately 10% last year, are expected to increase 10-12% over the next 12 months, it said.
Apr 8th 2011 00:50
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