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Need to Know | Airlines to suffer $5.2bn losses this year: Iata

Need to Know | Airlines to suffer $5.2bn losses this year: Iata
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First Published: Mon, Oct 27 2008. 10 58 PM IST
Updated: Mon, Oct 27 2008. 10 58 PM IST
Toulouse/ New Delhi: The US, India, the EU and a dozen other countries are exploring ways to liberalize the aviation industry after a weekend summit meeting in Istanbul organized by the International Air Transport Association (Iata).
Senior officials from Australia, Brazil, Canada, Chile, Mauritius, Morocco, Panama, Singapore, Switzerland, Turkey and Vietnam were among those assessing rules on airline competition and ownership with a view towards easing restrictions, said Jeff Shane, an aviation lawyer and former under-secretary for the US transportation department.
International air traffic is governed by about 3,500 bilateral air treaties that dictate where carriers can fly and how many times a day, how many airlines may fly from a given country, and who must own the airline. No decisions were made at the summit. Participants have asked Iata to help set up a second meeting in early 2009 “to turn discussion into action,” said Giovanni Bisignani, CEO of Iata.
The global airline industry is expected to lose more than an estimated $5.2 billion this year as international passenger traffic has substantially declined despite a fall in oil prices by half.
Airlines in the Asia-Pacific region, including India and China, experienced a sharp fall of 6.8% in September compared with the same month last year. The latest figures were released by Iata at the summit.
— Bloomberg & PTI
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Fall in gold may continue as investors exit
New York: Gold may fall for a third straight week as investors exit commodities on speculation the world is headed for a recession that will curb demand for raw materials.
Fifteen of 28 traders, investors and analysts surveyed from Mumbai to Chicago on 23 and 24 October advised selling gold, which fell 7.3% to $730.30 (Rs36,588) an ounce last week in New York. Nine said to buy, and four were neutral. Investors pulled $525 million from commodity and energy funds in the week ended 22 October, researcher EPFR Global said. The Reuters/Jefferies CRB Index of 19 raw materials dipped 9.3% last week and touched a four-year low. Gold has plunged 17% this month and reached a 13-month low on 23 October.
— Bloomberg
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Unitech gains most in 16 years after record drop
Mumbai: Shares of Unitech Ltd climbed the most in 16 years after the country’s second largest developer said its one-day record drop last week was because of rumours spread by “criminal” speculators. Unitech rose 38% to Rs42.65 at close of Mumbai trading on Monday. The developer is the second worst performer on the 14-stock Realty Index of the Bombay Stock Exchange, having dropped 91% this year.
— Bloomberg
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Tata Tea Q2 net profit rises on higher sales
Mumbai: India’s Tata Tea Ltd, the owner of brands such as Tetley, said second-quarter profit, together with that of units, more than doubled from a year earlier.
Profit climbed to Rs218 crore in the three months ended 30 September from Rs81.3 crore a year earlier, the Kolkata-based company said in a statement to the Bombay Stock Exchange on Monday.
Revenue rose 14% to Rs1,230 crore.
— Bloomberg
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Tata Power Q2 net rises 2% to Rs262 cr
Mumbai: The country’s third biggest electricity generator by market value Tata Power Ltd said profit in the second quarter rose 2%.
Net income rose to Rs262 crore in the three months ended 30 September from Rs257 crore a year earlier, the Mumbai-based company said in a statement to the Bombay Stock Exchange.
Revenue rose 44% to Rs2,150 crore.
— Bloomberg
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JM Financial second quarter net down 53%
Mumbai: JM Financial Ltd on Monday announced net profits of Rs20.89 crore for the second quarter ended 30 September, a decline of 53% over the corresponding period last year, and only marginally higher than the Rs1,834 crore in the first quarter of this fiscal.
Total income for the quarter fell by an even larger margin, 63.6%, at Rs121.68, against Rs191.24 last fiscal.
“India is experiencing some very difficult times. Global markets have been going through a major turmoil and the repercussions have been felt far and wide. Emerging economies such as India, have also taken a beating despite strong fundamentals,” said Nimesh Kampani, chairman and managing director of JM Financial, an integrated financial services group.
“In view of the strain on money markets and capital markets due to the aftermath of the global financial crisis, volumes in all our businesses are under pressure,” the company conceded in a statement.
“The volumes have decreased substantially on account of unfavourable market conditions and, as a result, the corresponding profits have also declined.”
The company’s shares closed at Rs17.95, or 7.47% down, on the Bombay Stock Exchange on Monday.
— Staff Writer
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First Published: Mon, Oct 27 2008. 10 58 PM IST