Air Kerala to have no effect on Air India Express

31 March 2013
Mumbai

The proposed ‘Air Kerala’ is unlikely to make a dent in the market-share of Air India’s international budget arm Air India Express, which hopes to post operating profit next fiscal, airline sources said. Low-cost Air Kerala, to be set up by Kerala government, was planning an April launch, but is yet to get Centre’s nod.

Kerala, with three international airports, is served by ten international carriers apart from domestic players Air India Express, Air India, IndiGo and Jet Airways. AI Express operates to ten destinations in the Gulf from Kerala. Air India Express, which operates 205 flights per week across Southeast Asia and the Gulf with a fleet of 21 Boeing 737-800s, commands 5-6 per cent market share.

The carrier is already Ebitda (earnings before interest, taxes depreciation and amortisation) positive and it may post operating profit in FY14, sources said. These expectations are based on continuous improvement in the cash-register. The airline has not increased capacity in its summer schedule which comes into effect Sunday. Sources also said the process to hire 40 commanders including trainees has started. The exercise would be completed by the Q1 of the next fiscal.

Source – http://english.manoramaonline.com/cgi-bin/MMOnline.dll/portal/ep/contentView.do?contentId=13752755&tabId=1&programId=11565538

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