New Delhi: The big boys of Indian aviation - Air India, Jet and Kingfisher - have sought government intervention in getting banks to lend working capital to them. An aviation ministry source said that banks have completely stopped lending to airlines and that the sector is facing its gravest fight for survival.
"Airlines have told us that bank funds are out of bounds for them even as working capital requirement is shooting up. With crude oil at $130 a barrel , there are indications that jet fuel price will rise again. Banks ask for viability before lending but the sector as of now is anything but that," said a source, warning that unless some sector-specific package is worked out, other airlines too could join the ranks of AI and Kingfisher, who are on the verge of closure.
The ongoing Kingfisher crisis is, in fact, proving to be a double-edged sword for the aviation ministry. While it realizes the sector as a whole needs a package to survive, any push at this time "is being seen as a sop to save Kingfisher," said a senior official. While this charge virtually rules out any swift action, Kingfisher itself is benefiting from this muddle.
12/03/12 Saurabh Sinha/Times of India
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