Deccan Aviation reports loss of Rs.42.94 cr on Rs.536 cr revenue

Bangalore, Oct 30 (UNI) Lean travel season, rising personnel and fuel costs had led Deccan Aviation posting a Rs.42.94 crore loss during the July-Sept 06 quarter.

Deccan Aviation Managing Director G R Gopinath in a release here said the aviation industry was witnessing increased competition and fare wars. He said the company was well funded and the costs being the lowest in the industry were under control.

The Board whichmet here today had approved inprinciple foray into Air Cargo Business through a whollyowned subsidiary of the company.

The Deccan Aviation having an impressive fleet of 54 aircraft, including 40 by its low cost airliner Air Deccan and 14 helicopters.

Air Deccan had carried over seven million passengers since inception.

Mr Gopinath said that the losses could be cut down further by adding new route operations, thus driving the company's growth and profitability.

Deccan Aviation Director Finance Mohan Kumar commenting on the financials of the company said ''we have had a robust growth in our passenger load factor averaging 73 per cent in the peak season. We are expecting a higher yield on the new routes which account for over 58 per cent of all routes as of now''. He said the Company was operating on a low debt level comparead to the volume of business.

The total debt as on September 30 was Rs.542.96 crore of which Rs.233 crore was aircraft hire purchase capitalised debt and Rs.251 crore being pre delviery financing for aircraft. The charter division had a term loan of Rs.16.37 crore, while the airline oepration division debt was Rs.42.59 crore.

UNI MV VK GM2125