27-Aug-2012 11:04 AM

The time is now if Air India has chance at achieving successful turnaround: CAPA India

Air India’s domestic gross revenue per passenger increased by 46% in 1QFY2013 resulting in topline growth of USD80 million, despite the impact of the pilots strike, according to a CAPA India report on the Indian carrier's 1QFY2013 performance, released on 24-Aug-2012. Based on CAPA India estimates, "Air India’s average gross passenger revenue was the highest in the industry at INR5655. As a result, domestic operations showed significant improvement and may have ended the quarter with a small surplus at the operating level, although CAPA estimates a net loss of INR3-4 billion (USD53.6-71.4 million)." The CAPA India report noted, "For the first time in several years, Air India’s domestic performance is headed in a positive direction which could become a trigger for an overall turnaround if the situation is capitalised. The national carrier needs to take advantage of the current domestic market conditions to focus on its restructuring by further reducing its cost base, improving productivity and solving its outstanding HR issues. If Air India has an outside chance at achieving a successful turnaround, the time is now, but it needs a board and management that can seize the initiative" [more - CAPA Analysis]

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