Indian carriers deep in red: IATA

New Delhi: The worst is not yet over for the aviation industry. At least 20 more airlines across the world are on the verge of collapse and one of which could be an Indian carrier.
The International Air Transport Association (IATA) has indicated that chances of failure among Indian airlines cannot be ruled out as the impact of the global crisis is spreading world-wide. The global aviation body is monitoring the cash flow of these carriers and may declare them bankrupt in the next few months.
The IATA red signal follows its forecast that Indian carriers are expected to suffer a cumulative operational losses of $1.5 bn (Rs 6,800 crore) in 2008 while the global aviation industry losses are expected to be around $4.1 bn. The industry had reported a profit of $5.6 bn last year.
IATA director-general and CEO Giovanni Bisignani told: “.. We cannot specify any particular Indian carrier, but one airline is facing severe financial crunch.”
Currently three airlines—Air India, Jet Airways and Kingfisher Airlines —are flying international. All the three carriers are in severe financial crisis and are cutting down operations. Air India has asked the government for a financial bailout while Jet Airways is trying to raise money for its operational needs. Kingfisher has cut its aircraft orders and is delaying its recently started international operations.
“Indian carriers are facing a rough patch as they pay very high fuel price and other inherent taxes. Air Traffic Control (ATC) charges are around 33% higher than other countries ... India lacks competitive aviation environment and airlines are carrying the burden, resulting in huge losses,” Mr Bisignani said.
28/09/08 Chanchal Pal Chauhan & Nirbhay Kumar/Economic Times

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Categories: Indian Aviation- In General Sep 2008