Air Deccan incurs Rs. 340 crore loss

Bangalore: Air Deccan has posted revenues of Rs. 1,352 crore and a net loss of Rs. 340 crore for the 15 months ended June 30, 2006, and the low cost airline has signed a term sheet to raise $100 million to take care of its contingencies.
Giving details of the revenues, the Air Deccan Director (Finance), Mohan Kumar, said the term sheet had been signed with a consortium of bankers in Europe for funds.
The revenues were impacted by increase in fuel and other input costs and introduction of 20 new aircraft, he said, adding that aircraft fuel expenses for the 15-month period was Rs. 625 crore and other operating expenses (including aircraft lease rentals) were Rs. 719 crore.
Mr. Mohan Kumar said the airline had a robust growth in seat factor, averaging 85 per cent in the peak seasons.
"However, the benefit of higher yields on the new routes, which account for over 58 per cent of all routes as of now, will flow in the next few quarters.'' New routes took a year to mature and started giving optimum yields. Of the total 96 routes operated as of June this year, 56 were new routes.
23/09/06 The Hindu

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