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Rohit Nandan, a Civil Aviation Ministry official will reportedly takeover as the head of Air India, replacing CMD, Arvind Jadhav. Reports quoted sources as saying that Jadhav’s services are being terminated and Nandan is being appointed CMD temporarily. A proposal for a joint management committee was dropped at the last minute to avoid duplication of command, reports quoted a source as saying. According to reports, Nandan who is expected to take over on Friday, is an Indian Administrative Service officer belonging to the 1982 batch.
Kingfisher Airlines Q1 net loss at Rs2.64bn
Kingfisher Airlines’ total revenue for Q1 FY12 was Rs. 19.11bn which is a 15% improvement over the same quarter last year. Increase in capacity, higher load factors, and improvement in yield contributed to the revenue growth. The company's first quarter loss widened to Rs2.64 bn from Rs1.87 bn a year earlier. The momentum in Indian aviation industry has continued with a strong demand growth of 15% in Q1 FY12. Even though the capacity growth at 19% slightly outpaced the demand growth, Kingfisher Airlines effectively capitalized on its strengths to achieve a 4 percentage point increase in domestic load factor. In the same period, industry load factors experienced a decline of 2 percentage points. For the quarter ended Q1 FY12, EBITDAR was Rs. 2.52bn as against. Rs. 3.4bn in FY10. EBITDAR margin for the year was at 13% as agaisnt last year at 20%. This profitability was achieved despite additional fuel cost burden of Rs. 2.6bn. The company reported an operating EBITDA profit of Rs. 46mn in Q1 FY12 compared to a profit of Rs. 990mn in Q1 FY11. The overall EBITDA margin for the quarter was 0.2%. Growing maturity of international routes was a major contributor to the improvement as the EBITDA loss on international operations reduced to Rs. 400mn in Q1 FY12
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