Mumbai terror attacks make airlines bleed on int’l routes

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Mumbai: High fuel costs, rigid taxation policies and now the terrorist attacks in Mumbai have hit major airlines in India hard. Carriers like the state-run Air India, India’s largest private carrier Jet Airways, and Kingfisher Airlines, which has recently launched its international operations to London, are losing nearly Rs 2 crore a day due to poor load factors on their international routes, especially, the US and UK post the November 26 attacks. These airlines have earlier told the media that they enjoy a healthy load factor of upto 75% on international routes.

A source at the Airports Authority of India (AAI) says, “The load factors on international flights have dipped almost 60% on all the airlines after the terror attacks ripped Mumbai due to postponing of travel and cancellations done by the travellers. Poor load factors and high airport usage fee will burn a neat hole in the bottomline of the airlines.” He further adds that most of the airlines have yet to pay their airport usage fee to the AAI, which collectively amounts to Rs 2,000 crore till date. Also, AAI charges Rs 22,770 for an aircraft (in case of international flight) weighing above 100 metric tonne.

It may be noted that according to the AAI data, nearly 40 million passengers travel to the US and 30 million to the UK annually from India. Also, in August 2008, international traffic was 2.67 million as compared to 2.44 million in the corresponding period last year. But an AAI official predicts a huge dip in international travel in the coming weeks, though considered a peak season for international travel.

However, Jitendra Bharghava, director (PR) at Air India says, “Tourists from the US and UK have deferred their travel to India. It’s a natural transgression after terror struck Mumbai last week.” It may be noted that Air India had spent Rs 20 crore on publicising its India-US operations last year. Besides, the route contributes nearly 20% to the revenues of Air India. Air India has nearly 24 weekly flights to the US from various Indian destinations and approximately 24 on the India-London sector.