INTO THE HEADWIND

FOCUS Graphiti Jun INTO THE HEADWIND z7,058 76,973 Nov 76,734 May Dec 76,734 76,712 Jul 76,634 Oct Aug 76,806 The Indian aviation industry has been caught in a pincer grip of high oil prices and intense fare wars, leading to mounting losses for all major carriers barring IndiGo. There are some indications of a turnaround in the offing with better cost and fleet management. The near-demise of Kingfisher Airlines and subsequent consolidation in the industry have also helped the other airlines cut losses and even post profits in some quarters. Sep 76,428 3 However, the rise in the price of air tickets led to a drop in domestic passenger traffic in 2012, the first time in many years... 2 7.3% 40,962,725 43,335,849 16% 19.2% ... with most of them gaining market share 59,867,573 15.9% 51,634,854 Research by Jyotindra Dubey 5,805 ApD Figures in per cent Graphic by Santosh Kushwaha 52,486,803 -12.3% Jet Airways Passengers Travelled (Domestic) Jet Lite 2008 2009 2010 1 25.5 Kingfisher 2011 2012 24.3 Growth in Traffic t 4 With the collapse of Kingfisher Airlines in 2012, its rivals felt emboldened to raise fares on major routes... ... even as aviation turbine fuel prices continue to stay high ... 14.1 IndiGo 12.6 SpiceJet 4.8 GoAir 16.6 Figures show Delhi fuel prices in kilolitre 2.2 Others 66,236 Air India Average monthly airfare on the Delhi-Mumbai route in 2012 5,233 Mar 47,816 2009 Jan 1, 2013 Jan 1, 2011 28 25.4 Jan 75,142 Jet Airways + Jet Lite Feb ... further eroding the profitability of carriers, many of which continued to post losses almost every quarter. IndiGo* is the sole exception IndiGo I Kingfisher Airlines 75,012 5 Kingfisher 7.2 GOAir 16.7 I SpiceJet Ltd. I Jet Airways 18 SpiceJet Air India Mar '11 June '11 Sep '11 2012 Dec '11 Mar '12 Sep '12 June '12 Dec '12# Figures show net profit/loss in & crore *IndiGo profit figures are unavailable as it is unlisted #Kingfisher and Jet had not declared their December quarter results at the time of going to press Sources: MakeMyTrip.com, DGCA, CMIE Prowess 713.6 -1151.53 FOCUS Graphiti Jun INTO THE HEADWIND z7,058 76,973 Nov 76,734 May Dec 76,734 76,712 Jul 76,634 Oct Aug 76,806 The Indian aviation industry has been caught in a pincer grip of high oil prices and intense fare wars, leading to mounting losses for all major carriers barring IndiGo. There are some indications of a turnaround in the offing with better cost and fleet management. The near-demise of Kingfisher Airlines and subsequent consolidation in the industry have also helped the other airlines cut losses and even post profits in some quarters. Sep 76,428 3 However, the rise in the price of air tickets led to a drop in domestic passenger traffic in 2012, the first time in many years... 2 7.3% 40,962,725 43,335,849 16% 19.2% ... with most of them gaining market share 59,867,573 15.9% 51,634,854 Research by Jyotindra Dubey 5,805 ApD Figures in per cent Graphic by Santosh Kushwaha 52,486,803 -12.3% Jet Airways Passengers Travelled (Domestic) Jet Lite 2008 2009 2010 1 25.5 Kingfisher 2011 2012 24.3 Growth in Traffic t 4 With the collapse of Kingfisher Airlines in 2012, its rivals felt emboldened to raise fares on major routes... ... even as aviation turbine fuel prices continue to stay high ... 14.1 IndiGo 12.6 SpiceJet 4.8 GoAir 16.6 Figures show Delhi fuel prices in kilolitre 2.2 Others 66,236 Air India Average monthly airfare on the Delhi-Mumbai route in 2012 5,233 Mar 47,816 2009 Jan 1, 2013 Jan 1, 2011 28 25.4 Jan 75,142 Jet Airways + Jet Lite Feb ... further eroding the profitability of carriers, many of which continued to post losses almost every quarter. IndiGo* is the sole exception IndiGo I Kingfisher Airlines 75,012 5 Kingfisher 7.2 GOAir 16.7 I SpiceJet Ltd. I Jet Airways 18 SpiceJet Air India Mar '11 June '11 Sep '11 2012 Dec '11 Mar '12 Sep '12 June '12 Dec '12# Figures show net profit/loss in & crore *IndiGo profit figures are unavailable as it is unlisted #Kingfisher and Jet had not declared their December quarter results at the time of going to press Sources: MakeMyTrip.com, DGCA, CMIE Prowess 713.6 -1151.53