GoAir Records a Profit of 104 Cr in FY13

GoAir is a popular choice among domestic travellers with flights to nearly 20 destinations in India. This airline, which is owned by the famous Wadia Group, runs on a low-cost model and aims to provide cheap air tickets to passengers. With 8.7 per cent market share, this carrier offers prompt services and affordable rates. It has always been famous for initiating smart tactics in their aircraft to reduce the cost of flying. Recently, it hogged the media limelight for initiating the induction of all-women crew on its flights. This step was taken to reduce the total weight of flights, which would in turn decrease the consumption of jet fuel.

Change in Financial Policies

With a remarkable increase in Go Air ticket booking in the last few months, this LCC has been able to put itself back on the profit charts in the financial year 2013. It has recorded a profit of over INR 104 Cr in the current fiscal as compared to a devastating loss of INR 133 Cr last year. A change in its financial policies regarding the rentals of aircraft leasing has had a major impact on its profit. Owing to this policy change, the current financial year saw almost 43 per cent boost in its revenue and 30 per cent upsurge in its expenses. However, majority of the expenses were due to the unpredictable increase in fuel prices.

Go Air AirlinesAccording to the officials of this LCC, it made over 15 per cent increase in the number of passengers in FY13. Additionally, a recent increase in its fleet size has had a notable impact on its business. GoAir is now eagerly waiting for the decision on relaxation of the aviation rule, which bars any airline with a fleet of less than 20 aircraft from carrying out international services. Once this issue is ironed out, this airline is sure to rule the roost in the Indian aviation sector.

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One Response to GoAir Records a Profit of 104 Cr in FY13

  1. Its good going for GoAir. Hope some other LCC or Full service carrier will show profits last financial

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