Policy-making paralysis over much-needed reforms and liquidity concerns raised by the grounding of Kingfisher Airlines has deterred investors, vendors, lessors and suppliers from doing business in India’s air transport sector, according to delegates attending last month’s Asia-Pacific Airlines Association Assembly of Presidents in Kuala Lumpur.
“Airlines in India are scared of rising fuel prices and airport charges, and are waiting for the regulatory environment to pan out,” a senior AAPA airline executive told AIN, speaking on condition of anonymity. “Besides, we do not expect much to move in India until the elections are over [in 2014] so we lose another two years.”
Meanwhile, the failure of cash-strapped Kingfisher to meet a deadline for repaying the agreed $1 billion out of $1.5 billion it owes a consortium of 17 Indian banks has raised doubts about whether the airline can restart operations, further eroding confidence in the industry overall.
10/12/12 Neelam Mathews/AIN Online
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“Airlines in India are scared of rising fuel prices and airport charges, and are waiting for the regulatory environment to pan out,” a senior AAPA airline executive told AIN, speaking on condition of anonymity. “Besides, we do not expect much to move in India until the elections are over [in 2014] so we lose another two years.”
Meanwhile, the failure of cash-strapped Kingfisher to meet a deadline for repaying the agreed $1 billion out of $1.5 billion it owes a consortium of 17 Indian banks has raised doubts about whether the airline can restart operations, further eroding confidence in the industry overall.
10/12/12 Neelam Mathews/AIN Online
