Air India Express to Post Profits this Fiscal
A very heartening news coming out from the sister concern of the national carrier of India, Air India Express, the low cost airline subsidiary of Air India, that it will be posting profit this fiscal. This welcome development will be welcomed with some skepticism and experts will scrutinize it very closely to make sure that there is no number game being played and the results are for real.
Air India Express is expected to post a profit of Rs 250 Cr. in 2015-16 fiscal. While many would be taking it with a pinch of salt, it is being said that the turnaround was made possible by a decline in jet fuel prices in the global market and attaining operational efficiency. The carrier has slimmed its fleet by cutting down from 24 planes in 2013 to 17 in 2016 and also cutting down on unprofitable routes. It has also improved its aircraft utilization to about 12 hours per day which means that it remains airborne for these many hours in a day.
It is also slated to operate flights to Dubai and Sharjah from Mumbai from next month. Since the opening of tickets for booking, the first flight will be about 30-40 percent full.