Deccan Aviation posts turnover of Rs. 536 crores
Deccan Aviation announced its quarterly results for the quarter ended on 30th September 2006. The company has posted a turnover of Rs. 536 crores as against Rs. 187.82 crores in the corresponding last quarter. The company has reported a Net loss of Rs. 42.94 crores for the quarter ended on 30th September 2006.
The management of the company listed factors like rise in personnel and fuel cost, starting new routes, stiff competition and a lean travel season, which influenced the results of the company.
The company operates 300 flights a day with a total of 60 destinations through a fleet of 54 aircrafts.
Deccan Aviation Managing Director G.R. Gopinath said: “The aviation industry presently is witnessing increased competition and fare wars. We are confident to cut down our losses.” Director (Finance) Mohan Kumar said: “We have had a robust growth in our passenger load factor averaging 73 per cent in the peak seasons. We are expecting higher yields on the newer routes which account for over 58 per cent of all routes.”
For the 15 month period ended on 30th June 2006 the Company had reported a loss of 340 crores. The company is in a process of reducing its losses. It has reported a significant rise in turnover. The company’s market share is increasing. It will be interesting to see how the company retains its market share in wake of stiff competition posed by various new entrants. There is a lot of pressure on passenger fares. However, the company might benefit from the falling international crude prices in the next quarter, which have come down to below $60 a barrel.