Aviation ministry awaits RBI guidelines on airline debt

New Delhi: India's Civil Aviation Ministry is awaiting guidelines from the Reserve Bank of India (RBI) on a debt restructuring package for the aviation sector, as it will help the ailing airlines bridge mounting losses.
"The RBI has to come up with guidelines for the restructuring of debt of the aviation sector. As far as my ministry is concerned, we support it... I believe that the RBI is actively looking into the issue," Civil Aviation Minister Praful Patel told reporters here.
Major carriers like Air India and Jet Airways have plans to restructure their debt and have been in talks with banks to get soft loans instead of high-interest ones.
"In the case of Air India, it (debt restructuring) is very much active on the government's agenda," Patel said.
He said such a move was important, because in 2008-09, the aviation sector around the world had gone through a bad phase. He expressed optimism that the regulator would actively pursue the matter.
Patel said the aviation sector was a major infrastructure sector and should be treated as such.
12/08/10 AsiaPulse via COMTEX/Trading Markets.com

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Categories: Indian Aviation- In General Aug 2010