Vijay Mallya is looking at reports of Q3 of 2008 , thinking that can there beany way to at least break even in this critical time of economic slowdown.Aviation industry is very sensitive industry triggered hard by the recessionacross the world. Kingfisher reports Rs. 592.96 crore net loss (from exhibit-1) for the quarter ended 31
Indian aviation sector is buckling under rising fuel prices & manpower costs and falling air traffic.
Sales stood at Rs 1,447 crore versus Rs 1,353 crore, in line with JetAirways, which also posted a net loss of Rs 214 crore for the quarter under review because of poor load factors.The company claimed that technically, the financial results for the thirdquarter cannot be compared with the corresponding quarter because theVijay Mallya-led Kingfisher was not listed last year and this year’s resultinclude figures of erstwhile Air Deccan, which Kingfisher took over lastyear.“High fuel and other operating costs coupled with lower load factorscontributed to the losses at Kingfisher,” an industry observer said.On the operational front, Kingfisher saw corporate traffic being hit duringthe quarter because of the economic slowdown. Yields and front-end loadfactor also suffered
“The full impact of the price reduction in aviationturbine fuel will lower the airlines’ operating costs,” the spokespersonadded.