Kingfisher: Everything Caused Us to Lose Money
December 10 2007 09:39 am
Kingfisher Airlines, an Indian carrier with hopes of flying A380s in the near future, reported that they lost about $150 million last year on roughly $450 million in revenue. I only bring this up because I liked the quote from a company officer on why they lost money: "the high cost is the main reason for the loss…aircraft
acquisition, depreciation, new routes, training requirement and the
spiraling cost of aviation fuel in India are the other reasons."
Basically everything.
Airlines in India 
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charlie on 10 Dec 2007 at 1:57 pm #
The URL is broken.
I’ve been reading about the plans for the T3 at the Delhi airport. They are impressive — on paper. But what do you think of the reality? It seems as if the Indian aviation market is really due for a crash — with current fuel costs I can’t see how they manage to make much money, and they don’t have the free money that the Gulf carriers seem to dip into….
Jared on 10 Dec 2007 at 3:43 pm #
Oops…linked fixed.
Indian carriers are already in the midst of some major financial struggles. We’re starting to see some consolidation (Sahara/Jet, Kingfisher/Deccan). To your point, the real long-term issue is that the infrastructure is a disaster and really limits the route structures. We’ll continue to see consolidation in the coming years. On the plus side, the nutty pricing of early 2007 and 2006 appears to have come to an end.