blue dart aviation ltd Management discussions

BLUE DART AVIATION LIMITED ANNUAL REPORT 2007 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS:- (Rs. in million) Particulars For year ended December 31, 2007 2006 Revenues Express Air Charter Services 29,43 25,33 Other Income 9 6 Less: Operating Expenses 27,62 24,10 Operating Profit (EBIDTA) 1,90 1,29 Less: Interest cost (Net) 56 40 Depreciation 1,13 70 Earnings/(loss) before tax 21 19 Less: Provision for Income tax 15 5 Earnings/(loss) after tax 6 14 OPERATIONS:- During the year under review, your Company has recorded a profit after tax of Rs.6 million as compared to profit after tax of Rs.14 million for the previous year. The net provision for tax has been increased due to the Company limiting the creation of additional deferred tax assets on un-absorbed tax depreciation. CARGO AVIATION INDUSTRY:- The air network, which is self-sustaining with its own airside and city side facilities, security systems including modern X-ray systems, aircraft and ground handling and maintenance capabilities, also provides enhanced marketing and distribution capabilities for the carriage of global cargo of international airlines into and out of India from its seven gateway hubs, apart from its unique freighter coverage across the country. During the year, your Company inducted one Boeing 757-200 cargo aircraft, which had commenced commercial operation with effect from November 12, 2007. In keeping with its Corporate Social responsibility, your Company donated aircraft engines, with no shelf life, for the use of two engineering colleges in their education programmes. FUTURE PLANS:- Your Company is planning to induct another 8757 aircraft in the later part of 2008. The Bangalore International Airport is expected to commence its commercial operations by end of the March 2008. Your Company is building a new city-side/airside facility at Bangalore International Airport to continue its operations uninterrupted. This integrated facility would be equipped with state of the art material handling systems. Your Company has identified space for its Aircraft operation at Rajiv Gandhi International Airport Ltd, Hyderabad. The Agreement for the space is expected to be signed soon with GMR Hyderabad International Airport Limited (GHIAL). Your Company has also identified a suitable space near to International Cargo Terminal for its Aircraft Operation at Delhi International Airport Limited (DIAL). The company is soon expected to receive the confirmation letter from DIAL. Your Company is in discussion with Mumbai International Airport Limited for allotment of alternate space for its aircraft operation, in place of existing place, which will be vacated during extension of the Aircraft IC terminal. AIRCRAFT ENGINEERING AND MAINTENANCE:- Your Company with its in-house Engineering, Structural and Technical expertise continues to provide maintenance support to the fleet of aircraft to ensure reliability and on-time performance. Your company has also developed in house Flight Operations Quality Assurance (FOQA) program for the study of flight trends. Your Company has introduced ARMS package (Airline Resource Management Software) which integrates all major functions of an airline, to bring about greater efficiency and transparency, and a move towards minimum paperwork supporting the go green philosophy of the Company. During the period, for the first time in India, your Company carried out in house C Check on a 8757 type of aircraft. Your Company continues to be the only Private Operator in the country, which is approved by Director General of Civil Aviation (DGCA) to carry out D checks. HUMAN RESOURCE DEVELOPMENT:- Harmonious employee relations continued to prevail in your Company. Your Company carried on with its focus on training and development of people through internal and external management development programmes.