Taking a bit of a nosedive

IIPM PUBLICATION

Air Deccan, Captain Gopinath’s baby that promises to make flying a reality for all Indians, has a spot of bad news, but one that it will recover from very soon, we hope! The Bangalore- based low-cost air carrier has posted a loss of Rs.2.13 billion for the third quarter (ended March 2007), although revenues for the quarter were up 66.34% (to Rs.457.45 crore) over the corresponding quarter, the year before. In the quarter before that, Air Deccan had made a profit of Rs.9.64 crore. Reasons for the loss? High operational costs and oversupply. Fuel prices were also high, and of course , there was also the fact that February and March are weak months in the travel sector. But there’s good news too. Vis-à-vis the corresponding period last year, the carrier improved its load factor to 83% from 71.75%, flew 1.7 million passengers against 1.07 million and operated 350 flights a day against 230 flights. Here’s wishing Air Deccan a quick recovery time!

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Rashmi Bansal Publisher of JAMMAG magazine caught red-handed, for details click on the following links.

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)