Tuesday, April 24, 2012

Hope for Indian Aviation As AI Posts Healthy Growth Revenue

When going gets tough, the tough get going! While it may be too early to celebrate Air India’s ‘toughness’, it sure is not too early to at least express hope!

India's flag carrier has posted some impressive revenue growth figures for the month of March as compared to same period last year. Sources in the airline say a healthy 46 per cent revenue growth has been achieved in the month in comparison to last year.

The growth basically rides on the airline’s better performance on the domestic travel sectors. The yields on domestic sector had noteworthy growth of 38.5 per cent in March vis-à-vis last year.

However, it is not to imply that Air India’s international operations fared badly. The airline has done reasonably well with 33 per cent growth in passenger revenue on international operations. It seems more people have chosen Air India to book their flights to India in March 2012 as compared to same month in 2011.

No doubt, these encouraging figures will offer some sort of hope to the ailing Indian aviation industry. A major global economy, the world would like to see Indian aviation more promising than it currently seems to be. India is also a popular holiday destination and the demand for air tickets on cheap flights to India especially seldom sees a slack, which again validates the need for a health aviation industry.

A week ago, the Indian Government approved the much-expected turnaround plan and a financial restructuring plan involving an Rs 30,000-crore equity infusion over the next eight years and a debt recast (CDR) of Rs 21,200 crore.


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