Aviation sector stocks in a tailspin

Mumbai: Aviation stocks are in the doldrums. After Jet Airways, Deccan Aviation which runs the low cost carrier Air Deccan, has taken a beating on the stock exchange. After being listed in May 2006, the carrier's share price is now quoting at Rs 77.75 on the Bombay Stock Exchange (BSE), much lower than its issue price of Rs 148.
SpiceJet stock closed on the BSE at Rs 40.15 on Friday, down 1.59% against Thursday's close. Since the beginning of the year, the stock has fallen by more than 51% on the BSE.
Meanwhile Jet Airways' stock has also dropped significantly despite its exit from the Air Sahara deal. It is currenlty quoting at Rs 522.30.
According to aviation analysts, rising aviation turbine fuel (ATF) prices, high salaries of pilots and expansion of new routes have taken a toll on the margins thus resulting in losses for airline companies.
12/08/06 Neelasri Barman/Financial Express

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