Airlines can still turn profitable: KPMG India

The Indian aviation sector, which is reeling under high fuel costs, can break-even and even become profitable if it focuses on process improvements, improves efficiencies, optimises cost and switches to a leaner business model, says KPMG India. In its report, ‘Indian Aviation: Flying Through Turbulence’ KPMG says ATF accounts for 30% of airline operating costs and it is possible for airlines in India to turn profitable in three years. The optimism of the report stems from the fact that air traffic is increasing in the country, becoming a primary travel medium not just on metro routes but also in tier 2 and 3 towns. India’s aviation sector is at a tipping point as increased dependence has been placed on connectivity by air, which is expected to lead to a high growth trend in the coming years. KPMG estimates that by 2012, there... [read full story]