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Friday, 25 January, 2002, 15:41 GMT
Indian air travel picks up
The luxurious First Class on Air-India's Boeing 747-400
Passengers have returned to enjoy the Air India service
Travellers in India are beginning to take to the skies again after a disastrous few months for the global airline industry.

Domestic carriers Jet Airways and Indian Airlines both say their flights are now 70% full, marking a sharp upturn in their fortunes since the slump which followed 11 September.

And the international airline Air India says many of its routes are now operating at full capacity.

Air India has been losing money for six years and is deeply in debt - so much so that the government's attempts to find a buyer for the company have been put on hold.

No financial relief

However, the news will provide little financial relief for Air India, who bought five new aircraft anticipating a pick up in traffic.

"It is not really going to help on the financial front," Jitender Bhargava, Air India spokesman told the BBC's World Business Report.

Lower fuel prices and interest rates have helped ease the pressure, but the temporary drop in passenger numbers, the cost of five new aircraft and greater security costs will hit the airline.

Extra security costs were met in the immediate aftermath of the attacks by the government, but have now to be carried by the airline, he said, pointing out that this translated into an extra $3.5 charge per person.

Greater drop

Passenger numbers had dropped anyway last year, because of the global recession, Air India spokesman Jitender Bhargava told the BBC's World Business Report.

This 4 or 5% drop on the previous year increased to 7 or 8% in the wake of 11 September.

This, he pointed out, compares with drops of 25% to 30% of western carriers.

"We did not register any drop in our passenger load after 13 December" attack on the Indian parliament, he said, adding that people still wanted to travel to parts of southern India.

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News image Air India spokesman
"We did not register any drop in our passenger load after 13 December"
See also:

22 Nov 01 | Business
Round-up: Aviation in crisis
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