Alcatel looks at Myanmar, sees growth in region

NEW DELHI: India’s Kingfisher Airlines’ posted its worst-ever quarterly loss yesterday, as huge cuts in the number of flights compounded the woes of a cash-strapped carrier facing high fuel prices and intense competition for low fares, sending its shares down to record lows.

India’s No. 2 airline until a year ago, Kingfisher has been the biggest victim of turbulence in its aviation industry, where six main carriers face a total debt load of US$20bil and US$2bil in annual losses.

It is now the smallest carrier in India by market share. Shares in the airline have plummeted more than 80% since the beginning of 2011, shrinking the airline’s market value to just under US$100mil.

The high-profile airline, which is owned by flamboyant liquor baron Vijay Mallya, lost 11.5 billion rupees (US$205mil) in the quarter to endMarch, compared with a loss of 3.6 billion rupees a year earlier.

That compared with a 4.1 billion rupees loss forecast by one analyst, according to Thomson Reuters.

Kingfisher shares slumped as much as 6.3% in early trading yesterday to a record low of 10.35 rupees.

The carrier blamed losses on high fuel prices, a weak rupee and an “unprecedented, tough operating environment,” but said it would return to normal services within 12 months. – Reuters BANGKOK: Telecom equipment maker Alcatel-Lucent is cautiously looking at business opportunities in Myanmar and other countries in South-East Asia and the region will play a bigger role in its future growth, according to its Asia-Pacific business chief.

The Franco-American company saw strong growth potential in Cambodia, Laos and Vietnam, where mobile phone penetration rates remained low, Rajeev Singh-Molares, its president for Asia-Pacific region, said in an interview yesterday.

Myanmar is opening up to the outside world after decades of isolation under a military junta. Over the past year, a new government has pushed through political and economic reforms and a new foreign investment law should be passed soon.

“Alcatel-Lucent is observing and watching the developments in Myanmar with a lot of interest,” he said on the sidelines of the World Economic Forum on East Asia in Bangkok.

“In a country where you have mobile phone penetration at 1%, there is a tremendous opportunity to do more. And to do more is not just for the industry, but for the development of the country.” – Reuters