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Our Bureau

It has posted a 67% growth in turnover to Rs 457.45 cr

Bangalore April 27 Deccan Aviation, which operates low cost carrier, Air Deccan has reported a loss of Rs 213 crore during the third quarter of its financial year.

A press statement from Deccan Aviation said it posted a 67 per cent growth in turnover to Rs 457.45 crore during the quarter ending March 2007. During the second quarter (October 06-December 06), the airline posted a Rs 9.64 crore profit. During that quarter, the airline declared profits because of the $30 million, which it received straight to the bottom line from the $100 million funding deal last year.

"A combination of high operational costs and oversupply is creating a weak domestic yield environment in the industry. Fuel prices are once again close to historically high levels coupled with the fact that February and March are inherently weaker months for the travel industry," the airline's Managing Director, Capt G.R. Gopinath, said.

Learning curve

An aviation analyst said the airline was further impacted by costs relating to migration of their central reservation system and reduction in ASKMs to enable bunching up of their maintenance programme. "These measures are expected to enhance our operational and financial performance in the coming quarters. This has impacted our financial results this quarter, which have been sluggish," Capt Gopinath said.

The airline said the focus is on its operations in terms of optimising its costs and increasing productivity.

The airline has on ordered 80 new aircraft to be delivered over the next six years.

The airline added 50 new flights and 4 four new destinations to its network this quarter. The airline carried 17.17 lakh passengers in the quarter.

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