New Delhi, June 5
The latest reduction of 4 per cent in the price of aviation turbine fuel (ATF) provides a relief of about Rs 3 per litre of fuel for the domestic airlines in the four metros.
On Thursday, Indian Oil lowered the per litre price of ATF in Delhi to Rs 66.22 from Rs 69.22 charged on June 1 this year. Similarly, in Chennai, airlines will be charged Rs 72.36 per litre of ATF, down from Rs 75.60 per litre earlier this month. Indian Oil lowered the ATF prices after the Finance Ministry on Wednesday halved the customs duty on aviation fuel to 5 per cent.
Airlines point out that it is difficult for them to reduce either the air fares or surcharges as ATF prices have been rising for the past several months. "In Delhi, airlines were paying Rs 45.49 per litre of ATF in January this year, which dipped slightly to Rs 44.71 per litre the following month. But from March, it has been rising again from Rs 47.04 per litre to Rs 53.30 in April, touching Rs 58.38 per litre in May," said an airline official. At the moment, ATF constitutes 45-50 per cent of the operating costs of domestic airlines.
"The monthly fuel bill of IndiGo will be reduced by Rs 6.3 crore as a result of the latest reduction, which is certainly meaningful. However, it is relatively small to the price increase that was implemented last week, which raised our costs by Rs 22 crore per month," said Mr Bruce Ashby, IndiGo President and Chief Executive Officer.
Pointing to the problems faced by industry, the Minister for Civil Aviation, Mr Praful Patel, said that between 2004 and 2008, while ATF prices rose five to six times, air fares on an average had declined, putting more pressure on domestic airlines.
Related Stories:
Fuel price spiral may squeeze airlines
Tough days ahead for airlines
‘ATF duty cut: Marginal impact on fares’
Airlines asked to report on impact of aviation fuel duty cut on fares
News Source
Friday, June 6, 2008
SpiceJet takes off on buzz of takeover by Anil Ambani group
Meanwhile, the BSE Sensex was down 30.75 points, or 0.19%, to 15,739.72.
On BSE, 20.78 lakh shares were traded in the counter. The scrip had an average daily volume of 15.86 lakh shares in the past one quarter.
The stock hit a high of Rs 37.45 and a low of Rs 32.80 so far during the day. The stock shad a 52-week high of Rs 104.80 on 8 January 2008 and the stock hit a 52-week low of Rs 29.50 on 3 June 2007.
The third largest listed private airline operator by sales had underperformed the market over the past one-month till 5 June 2008, declining 24.97% compared to the Sensex’s decline of 9.05%. It had also underperformed the market in the past one quarter, declining 42.49% compared to Sensex’s decline of 1.29%.
The company’s current equity is Rs 240.65 crore. Face value per share is Rs 10.
Vijay Mallya-promoted Kingfisher Airlines and the countrys largest private sector carrier Jet Airways are also said to be in fray for picking up a stake in SpiceJet. SpiceJet, which just completed three years of operations, is valued at around Rs 755 crore, according to its market capitalization. Anil Ambani had also evinced interest last year to buy a controlling stake in Deccan Aviation.
Rising aviation turbine fuel (ATF) prices will hit airlines. Airlines re suffering huge losses and they cannot pass the entire burden (of jet fuel price rise) on users as it negatively affected the number of passengers carried by them.
Most airlines had raised fuel surcharge recently due to rise in jet fuel prices. Jet Airways, Kingfisher and budget airline Deccan Aviation have raised fuel surcharge with effect from midnight of 2 June 2008. All the three airlines increased fuel surcharge by Rs 300 for sectors under 750 kilo meter and by Rs 550 for sectors over 750 kilometers, reports suggest.
Jet fuel accounts for 40% of the operating cost of Indian carriers. State-run Indian Oil Corporation has raised jet fuel prices by 18.6% effective from 1 June 2008. Domestic prices, offered by the firm, have gone up about 89% from June 2007.
SpiceJet had said earlier it will consider temporarily suspending flights on financially unviable routes as losses mount on account of surging jet-fuel prices.
SpiceJet is a low-cost airline based in New Delhi, India. It began services in May 2005.
SpiceJet is yet to report profits ever since its commenced operations. The company's net loss widened to Rs 70.74 crore in year ended March 2007 (FY 2007) as compared to net loss of Rs 59.13 crore in year ended May 2006 (FY 2006). Net sales rose 52.60% to Rs 640.44 crore in FY 2007 over FY 2006.
report source
On BSE, 20.78 lakh shares were traded in the counter. The scrip had an average daily volume of 15.86 lakh shares in the past one quarter.
The stock hit a high of Rs 37.45 and a low of Rs 32.80 so far during the day. The stock shad a 52-week high of Rs 104.80 on 8 January 2008 and the stock hit a 52-week low of Rs 29.50 on 3 June 2007.
The third largest listed private airline operator by sales had underperformed the market over the past one-month till 5 June 2008, declining 24.97% compared to the Sensex’s decline of 9.05%. It had also underperformed the market in the past one quarter, declining 42.49% compared to Sensex’s decline of 1.29%.
The company’s current equity is Rs 240.65 crore. Face value per share is Rs 10.
Vijay Mallya-promoted Kingfisher Airlines and the countrys largest private sector carrier Jet Airways are also said to be in fray for picking up a stake in SpiceJet. SpiceJet, which just completed three years of operations, is valued at around Rs 755 crore, according to its market capitalization. Anil Ambani had also evinced interest last year to buy a controlling stake in Deccan Aviation.
Rising aviation turbine fuel (ATF) prices will hit airlines. Airlines re suffering huge losses and they cannot pass the entire burden (of jet fuel price rise) on users as it negatively affected the number of passengers carried by them.
Most airlines had raised fuel surcharge recently due to rise in jet fuel prices. Jet Airways, Kingfisher and budget airline Deccan Aviation have raised fuel surcharge with effect from midnight of 2 June 2008. All the three airlines increased fuel surcharge by Rs 300 for sectors under 750 kilo meter and by Rs 550 for sectors over 750 kilometers, reports suggest.
Jet fuel accounts for 40% of the operating cost of Indian carriers. State-run Indian Oil Corporation has raised jet fuel prices by 18.6% effective from 1 June 2008. Domestic prices, offered by the firm, have gone up about 89% from June 2007.
SpiceJet had said earlier it will consider temporarily suspending flights on financially unviable routes as losses mount on account of surging jet-fuel prices.
SpiceJet is a low-cost airline based in New Delhi, India. It began services in May 2005.
SpiceJet is yet to report profits ever since its commenced operations. The company's net loss widened to Rs 70.74 crore in year ended March 2007 (FY 2007) as compared to net loss of Rs 59.13 crore in year ended May 2006 (FY 2006). Net sales rose 52.60% to Rs 640.44 crore in FY 2007 over FY 2006.
report source
Subscribe to:
Posts (Atom)