Domestic airlines post huge losses

New Delhi: Domestic airlines have posted cumulative losses of over Rs 1,100 crore despite the sector growing at 25 per cent.The airlines refused to divulge financial details but industry sources say other than Jet Airways most other airlines are in the red.
The worst hit are start-ups like Air Deccan, Kingfisher, Spice Jet, Paramount and Go Air.For example, Air Deccan has posted around Rs 100 crore loss in the last one year while Kingfisher is understood to be losing a whopping Rs 25 crore every month.
"The fares have hit rock bottom plus the companies bear high ATF tax and infrastructure costs like parking bays. The start up carriers are bound to face a tough time," said Kapil Kaul, CEO, CAPA.
17/03/06 NDTV.com

To Read the News in full at Source, Click the Headline