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AirAsia India doubles quarterly loss to Rs 38.2 crore

The carrier, its Malaysian shareholder’s joint venture with Tata Sons, posted a net loss of 23.4 million Malaysian Ringgits (Rs 38.2 crore).

, ET Bureau|
Updated: Feb 27, 2016, 06.04 AM IST
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AirAsia India nearly doubled its quarterly net loss in October-December impacted by higher costs.
AirAsia India nearly doubled its quarterly net loss in October-December impacted by higher costs.
MUMBAI: AirAsia India nearly doubled its quarterly net loss in October-December impacted by higher costs, even as its main shareholder AirAsia Berhad swung to a profit.

The carrier, its Malaysian shareholder’s joint venture with Tata Sons, posted a net loss of 23.4 million Malaysian Ringgits (Rs 38.2 crore) from a net loss of 12.7 million Malaysian Ringgits (Rs 20.8 crore), according to AirAsia Berhad’s filing with Bursa Malaysia, the Kuala Lumpur based stock exchange.

Revenue rose more than three times to Rs 208.46 crore.

In this period, its fleet size doubled to 6 planes and capacity as well as passengers carrier increased by more than two-fold.

AirAsia Berhad owns 49% in the airline while Tata Sons owns 41 per cent. The rest is owned by Arun Bhatia of Telestra Tradeplace.

In an interview last year to ET, AirAsia’s global CEO Tony Fernandes had claimed the Indian carrier would be profitable in December.

"There is only one profit in my mind and that is net profit," he had said. It wasn’t clear from the numbers whether AirAsia India posted a net profit in the month of December. AirAsia India’s fuel expenses more than doubled to Rs 73.41 crore during the quarter.

The airline leases planes from a company affilia ted to the AirAsia group, a bone of contention between the shareholders and its management according to Telestra’s Bhatia.

The numbers showed AirAsia India’s lease rental payments to its parent increased more than three times and lease rental payout per aircraft also went up by more than 60 per cent. A detailed mail, several calls and messages to company spokespersons, Fernandes and AirAsia India CEO Mittu Chandilya remaianed unanswered.

The airline’s costs per available seat kilometre (ASKMs), which would take the capacity increase into account, decreased by 25 per cent. Revenue per ASKM reduced by 5 per cent.

"In India, the forward loads remain buoyant with a forecast load factor of 82 per cent in quarter one of 2016. For the remaining quarters of 2016, AirAsia India will remain focused on building a footprint in the Indian domestic market with the introduction of new routes and frequency increases," AirAsia Berhad said in the filing.

During the quarter, AirAsia Berhad posted a net profit of 554.20 million ringgit from a net loss of 428.51 million ringgit a year earlier.

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