Thursday, August 31 2006 14:05 Hrs (IST) - World Time -

New Delhi: Expressing concern over the losses incurred by the Indian aviation industry, US aircraft major Boeing has cautioned that this could lead to a 'potential disaster' if it went unchecked.

"The losses in the Indian aviation industry is a cause for concern. It needs to be checked otherwise that will be a potential disaster for the industry," Boeing's' Senior Vice President (Sales commercial planes) Dinesh A Keskar said here.

He said India's low cost carriers faced pressures on yields per passenger due to low fares and high fuel prices.

Despite a sudden growth in passenger traffic and a projected growth of about 20 per cent in the next four-five years, the Indian civil aviation sector has seen many of the major players in red.

Leading carrier Jet Airways reported a loss of Rs 450 million in the quarter ended June, despite clocking a 25 per cent increase in revenue at Rs 16.80 billion. Low cost airline Air Deccan reported a loss of about Rs 350 mn in the 12 months ended March this year, while another budget airline SpiceJet had also reported a loss of Rs 410 mn in the fiscal ended May.

Pointing out that the sustainability of the sector withstanding loss was under question, Keskar said mergers and takeovers were on the cards.

"In the next 12 months there could be consolidation," he said.