The Hindu Business Line : Deccan Aviation makes Rs 191-cr loss in Q2

The losses were on account of capital related costs, which included interest, lease rentals and depreciation, and the one-off expenses due to rebranding.

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Bangalore, Feb. 1 Deccan Aviation has posted a loss of Rs 190.86 crore during the second quarter ended December 31, 2007 compared with a profit of Rs 9.64 crore it made during the same time in the previous year.

But on a sequential basis, the low-cost airline reduced its losses 24.61 per cent to Rs 190.86 crore.

The net sales of the airline during the second quarter of 2007-08 was higher by 19.52 per cent to Rs 567.73 crore on a year-on-year basis. On a sequential basis, the net sales grew 27.49 per cent.

In a press statement, the company said the losses were on account of capital related costs, which included interest, lease rentals and depreciation, and the one-off expenses pertaining to rebranding.

The airline said the increase in sales was largely because of the result of improved yield, which reflect the airlines’ repositioning as a high value carrier.

Ticket value

Average ticket values for the period were about 12 per cent higher than the corresponding quarter of the previous year.

While the benefits of combining the operation of Kingfisher Airlines and Deccan Aviation are yet to flow through, pending national rollout, the quarter under review witnessed a high impact rebranding exercise with attendant one-off costs.

These one-off costs also include the cost of having part of the fleet on ground throughout the period for refurbishment and repainting.

Despite a steep increase in the average cost of Aviation Turbine Fuel, amounting to over 13 per cent over the corresponding quarter of the previous year, the company was able to operate at EBITDAR positive levels during the quarter without relying on any exceptional inflows from non-operation sources.

“Going forward, our objective of profitable growth is intertwined with our ability to be consistently safe, reliable and customer-friendly in our operations,” Deccan’s officiating Chief Executive Officer, Mr Ramki Sundaram, said.

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