Low-cost carrier Deccan Aviation [Get Quote] is considering rationalisation of some of its routes as a cost-cutting measure in the backdrop of a hike in aviation turbine fuel (ATF) prices, a top company official said."We are looking at different cost-cutting measures. We are considering rationalisation of routes since many of them were on a gross negative margin," Deccan Aviation's officiating CEO and CFO Ramki Sundaram said.
Cost-cutting measures would also be implemented on IT solutions, distribution costs and others as well, he said.
On taking of aircraft deliveries, Sundaram said that if oil prices continued to rise, the company might consider deferring taking possession of them. "We might defer taking aircraft deliveries if the situation continues," he said.
"By the end of this calendar year, we were supposed to get 6 ATRs and 6 Airbuses," he said. Deccan's fleet has around 83 aircraft.
As a cost-cutting measure, the company would also take the sale lease route aircraft, he said. The company would first buy the aircraft and then sell it to some other airline at a higher price and then again lease it.
Speaking on the airline industry, Sundaram said that the industry had a growth of only 8.7 per cent this year in April compared to 30 odd per cent in the same time last year.
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