Indian aviation industry to report losses of USD1.5 billion in 2009: IATA
Separately, Boeing India President, Dinesh A Keskar, stated he expects growth will return to the Indian aviation industry over the next six months, adding, “this possibility of growth will be lead by three key drivers, which are, correction in the situation of aircraft overcapacity, reduction in fuel prices and upturn in the economy. Further the up coming tourism season will also help the industry”. The manufacturer is scheduled to deliver 90 aircraft to Indian carriers over the next four years.
India’s Directorate General of Civil Aviation reports the number of aircraft acquired by India’s aviation industry fell 20% year-on-year to 132 aircraft for the nine months to Sep-2009. During the period, 45 aircraft were de-registered by the regulator, as airlines returned aircraft to lessors.
Citigroup added, "it is not certain whether JAL will go through a private reorganisation or file for bankruptcy, but even if it stays clear of bankruptcy, we think value for existing shareholders will be substantially reduced on dilution accompanying a big capital increase”.
70% of ANA and JAL domestic services operating at a loss
ANA’s shares were also weaker on Friday, slipping 1.6%. Local Japanese media reported that JAL and ANA are reportedly operating more than 70% of domestic routes at a loss, with average load factors under 60% between Apr-2009 and Aug-2009.
Asia Pacific selected airlines daily share price movements (% change): 23-Oct-09