New Delhi: Air Deccan, India's first and largest low cost carrier, said on Friday that it was discontinuing services to some unprofitable routes to cut losses that are mounting due to high fuel costs.
Deccan Aviation Ltd, the airline's promoter which posted Rs 340 crore losses for the 15 months period ending June, would suspend flights to Kanpur, Nasik and Surat, its Managing Director Capt G R Gopinath said.
"When we operate such a large fleet, we are bound to pull off from some places" that are not economically viable, he said, adding that it would increase services to other sectors next month.
Capt Gopinath said service to Kanpur was suspended due to the poor condition of the airport there, while Nasik and Surat were ticked off due to low load factor on these routes.
Air Deccan had earlier attributed the losses to absorption of fuel costs in the last eight to nine months.
"There is a method in this madness (in absorbing the increase). We have a robust model. The strategy was to get the largest market share," Capt Gopinath had said, adding that the Rs 340 crore loss can be considered as expenditure to build the market.
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