New Delhi, December 22: The domestic aviation industry will suffer a combined loss of Rs 6,500-7,000 crore in the current fiscal, says the aviation consultancy firm CAPA.
The total industry loss for the past fiscal is estimated at around Rs 10,000 crore.
In the four years to March 2010, “it is estimated that Indian carriers will have accumulated operational losses in excess of Rs 26,000 crore,” CAPA said in its recent report ‘Indian Aviation: A Review of 2009 and Outlook for 2010’.
The agency also said the low-cost airlines, an operating model which did not exist in the domestic market until six years ago, could account for almost 70 per cent of domestic capacity within the next two-three quarters.
“This is due to the decision taken by carriers such as Jet Airways and Kingfisher Airlines to reconfigure the majority of their domestic aircraft to operate no-frills service.
–Agencies