The fiasco at Kingfisher has brought to light the financial doldrums that the aviation industry in India is in. Will the high debt levels weigh too heavy for some of the players to take flight? CNBC-TV18 catches up with the management of Jet Airways to figure out where they are headed.
Speaking to the channel, M Shiv Kumar, senior vice-president (finance) of Jet Airways says that rupee depreciation has impacted debt levels for the company. Current debt in books for Jet Airways stands at Rs 14000 crore. “Debt will come down by Rs 15000 crore in the next six months,” he says.
On the half-yearly performance, Kumar says that the losses incurred in the first two quarters were mainly on account of irrational pricing in a high interest cost and high fuel price scenario. “Going ahead, we will see better yields due to the hike in fares,” he says.
Kumar indicated that the airline may soon be looking to raise funds.
On the issue of foreign direct investment in aviation, Jet remains neutral to whatever decision the government takes, he informed.
16/11/11 CNBC-TV18/Moneycontrol.com
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment