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India's Minister of Civil Aviation expresses concern over financial state of sector

24-Sep-2012 10:10 AM

India's Minister of Civil Aviation Ajit Singh expressed (21-Sep-2012) concern over the financial health of airline carriers in India despite the high growth rate of passengers. Stating that the approximate losses of airlines in financial year 2011-12 have been over INR100 billion (USD1.87 billion), the Minister said "one of the major challenges of the air traffic industry in India is the high and growing debt burden of the carriers". He said nearly half of the debt is aircraft related and the rest is accounted for by working capital loans, dues to airport operators and fuel companies. Mr Singh said while there are number of structural factors responsible for this phenomenon, the operating cost environment is adversely impacting the financials of the airline sector. [more - original PR]