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AirAsia India posts Rs 21 crore loss

Result is not comparable to corresponding period in 2013 because airline began operations only last June

BS Reporter  |  Mumbai 

India made a net loss of about Rs 21 crore in the December-end quarter.

The airline began its service from Bengaluru last June and has three aircraft at present. It will add a fourth plane next month.

India is an associate company of Malaysian low cost airline Berhad which is listed on Kuala Lumpur stock exchange. In its result filing to the exchange AirAsia disclosed that its Indian airline made a net loss of 12.7 million Malaysian ringgit (about Rs 21 crore) in December end quarter. The result is not comparable to corresponding period in 2013 because the airline began operations only last June.

"We hope to break even after adding the sixth plane. We have already started generating positive cash flows. The positive cash flow is not because of discounts from Bengaluru airport that add up to only 0.75 per cent of our costs. Our flight occupancy is good," CEO said earlier in the month. The airline will have a fleet of 13 aircraft by December 2015.

Initially, the airline had decided not to fly to Delhi and Mumbai due to high costs but plans to launch Delhi flight from March.

 

First Published: Fri, February 27 2015. 18:34 IST
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