RBI says airline sector to continue facing funds crunch

Mumbai: The bleeding domestic aviation sector is likely to continue facing funding crunch and could also be affected by prevalent policy uncertainties, the Financial Stability Report released by the Reserve Bank said on Thursday.
Stating that these factors pose a challenge to the asset quality of banks, the report said the "asset quality of banks' credit to the airlines industry came under some stress in recent periods, driven largely by the performance of some specific airlines".
The three listed airlines -- Jet, Kingfisher and SpiceJet -- posted accumulated losses of Rs 1,698 crore in the March quarter, with the near-bankrupt Kingfisher alone reporting a massive Rs 1,151 crore loss on account of higher fuel prices, irrational taxes and mounting airport charges.
29/06/12 PTI/ZeeNews

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Categories: Indian Aviation- In General Jun 2012