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| Edited By: |Source: Reuters |Updated: Mar 17, 2018, 02:54 AM IST
Kingfisher Airlines Ltd has roped in US firm Seabury Aviation and Aerospace to advise on restructuring its operations and help the airline boost performance on the back of a reviving domestic industry.
"...Seabury has been hired to come in and assist us in sustaining long-term profitability by further strengthening the operational and financial performance of the company so that we are well poised to ride the upturn and capitalise on this opportunity ," the airline told Reuters in an e-mail.
Prakash Mirpuri, vice president, Corporate Communications, told Retuers on Monday that fleet optimisation would be one of the areas the consultancy would advise Kingfisher on. The airline has a fleet size of 66 aircraft.
Mirpuri did not say how soon Seabury would come up with its recommendations.
Seabury provides expertise to the aviation and aerospace industries in areas of strategy, business planning, network development and fleet optimisation.
The decision to rope in Seabury comes after Kingfisher reported a net loss of Rs4.2 billion for the quarter ended December. Its listed peers Jet Airways and SpiceJet posted net profits for the same period, helped by an upturn in domestic air traffic.
"It is premature to say the mere appointment of a consultant is good news. Their topline is not much of a worry, what is of worry is the cost side that they have to start rationalising," an analyst from a local brokerage, who declined to be named, said.
India's domestic air passenger demand went up 35% while capacity increased 10% in December, as per data from industry regulator Directorate General of Civil Aviation.
"Air travel is picking up now we just need ATF (aviation turbine fuel) to stay stable," Mirpuri said.
ATF, which makes up about 40% of an airline's operating costs, has risen about 5% since October.
At 12.17 am, shares of Kingfisher were up 0.68% at Rs52.15 in the Mumbai market.
