Indias Two Largest Carriers Report Profits

Wednesday, 15th August 2012 at 14:23pm

The aviation industry in India has finally seen brighter days as two of its largest carriers are back in black. SpiceJet and Jet Airways have posted profits from January to March, ending the sad days of the country's once-ailing aviation industry. The positive news would somehow give other airlines, which have been unprofitable for years, hope in their quest to finally make profit.

SpiceJet, the leading low-cost carrier in India, is the bigger gainer among the two as it was able to post profit 51% over the same period last year. The budget carrier has been largely serving the domestic market but has been slowly expanding to overseas markets such as Kathmandu (Nepal), Colombo (Sri Lanka), Dubai (UAE) and, by August 14, to Kabul in Afghanistan. According to some observers, the airline may also expand to less-connected destinations such as Hanoi in Vietnam and Tashkent in Uzbekistan. It is mulling the possibility of flying to largely untapped destinations which take four to five hours from Indian major cities.

The full-service airline, Jet Airways, on the other hand, was able to post a profit of 25 crore in the first quarter of 2012, ending its five-year losing streak since 2007.

An airline senior official admitted that the aviation industry in India is now on track to better days. Airlines have been complaining in recent years about mounting losses despite the growing air passenger traffic. But with SpiceJet and Jet Airways positive development, difficult times are gone for the country's aviation industry. What most other airlines need now is to come up with the right decisions to initiate programs to make money.

Other low-cost carriers can look up to SpiceJet's game plan to boost their profitability. IndiGo is the only airline in India that has been consistently performing well and never incurred losses while the rest are in the brink of bankruptcy and eventually folded up. SpiceJet and Jet Airways must have found the secret formula IndiGo has been using.

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