Air Deccan, India’s first no frills low cost airlines is facing turmoil now, w
hich was disclosed in its financial result. It earned a whopping Rs.340.55 billion loss for the fifteen month period ending June 31, 2006! This is the first time that the company has disclosed its finances after going public this year. Worse enough, its parent company Deccan Aviation too posted a loss of Rs.2.30 billion during 2005- 06. The reasons for the losses were pretty obvious – rapid expansions, a mixture of fleet and illogically low fares, which has resulted in the total operating costs to swell! The low cost carrier is also in the process of raising Rs.5 billion from banks for its immediate capital expenditure purposes, but most importantly it has to understand that it will have to discontinue operations very soon if it does not act more sensibly in the short-term.
For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
hich was disclosed in its financial result. It earned a whopping Rs.340.55 billion loss for the fifteen month period ending June 31, 2006! This is the first time that the company has disclosed its finances after going public this year. Worse enough, its parent company Deccan Aviation too posted a loss of Rs.2.30 billion during 2005- 06. The reasons for the losses were pretty obvious – rapid expansions, a mixture of fleet and illogically low fares, which has resulted in the total operating costs to swell! The low cost carrier is also in the process of raising Rs.5 billion from banks for its immediate capital expenditure purposes, but most importantly it has to understand that it will have to discontinue operations very soon if it does not act more sensibly in the short-term.For Complete IIPM - Article, Click on IIPM-Editorial Link
Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
