With no relief coming for the debt-ridden airlines in the Union budget last month, the aviation ministry is set to make another pitch with the finance ministry for according infrastructure status to the sector.
The proposed classification would help airlines access funds from banks at cheaper rates besides getting longer repayment period.
As per Crisil Research, a unit of rating agency Crisil, the domestic airlines are saddled with a combined debt of more than Rs 70,500 crore as of March 2014. The three carriers Air India, Jet Airways and SpiceJet account for 93 per cent of the sector’s total debt.
“It (the proposal seeking infrastructure status) is already on the cards. Definitely, we want this for the sector. It will propel the real growth in domestic aviation,” a senior aviation ministry official told Financial Chronicle
29/03/15 Nirbhay Kumar/mydigitalfc.com
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The proposed classification would help airlines access funds from banks at cheaper rates besides getting longer repayment period.
As per Crisil Research, a unit of rating agency Crisil, the domestic airlines are saddled with a combined debt of more than Rs 70,500 crore as of March 2014. The three carriers Air India, Jet Airways and SpiceJet account for 93 per cent of the sector’s total debt.
“It (the proposal seeking infrastructure status) is already on the cards. Definitely, we want this for the sector. It will propel the real growth in domestic aviation,” a senior aviation ministry official told Financial Chronicle
29/03/15 Nirbhay Kumar/mydigitalfc.com
