The Hindu Business Line : Deccan Aviation net loss widens

In a press statement, the group, which operates low-cost airline Air Deccan, said during the same quarter, total income rose 17.17 per cent to Rs 514.02 crore. For the April-June 2007 quarter, lease rentals rose 51 per cent to Rs 105.83 crore.

For the year ending June 2007, total income was Rs 2,142.31 crore, while the net loss was Rs 419.58 crore. The previous year’s figures were for a period of 15 months from April 1, 2005 to June 30, 2006. Overall revenues recorded a 98 per cent growth on a normalised annual basis.

“The last year was a year of challenges and transition; the focal point being optimisation of costs and boosting efficiencies. We transitioned our reservation system which has had a continuing cascading effect, influencing our ability to enhance our topline. We are currently in a turnaround mode, with enhanced management bandwidth, putting processes and systems in place to achieve sustainable, profitable growth over the long term,” Air Deccan Chief Executive Officer, Mr Ramki Sundaram, said in a statement. He said several initiatives will be rolled out soon and its impact will be visible in the near term.

On investments to be done from its IPO proceeds, Deccan Aviation is yet to set up a training centre for which an amount of Rs 65.67 crore had been allocated. Out of Rs 363.28 crore from the IPO proceeds, an amount of Rs 196.16 crore has been invested so far, the statement said.

During the fiscal year, Deccan Aviation made fresh issue of shares constituting 26 per cent of post-issue of capital to the UB Group. The UB Group has offered to buy another 20 per cent of the share from the open market at Rs 155 per share as per the regulatory requirements. The open offer ends on October 1.

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