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Monday, 30 June 2014

Grim outlook for aviation

New Delhi: Domestic carriers are expected to post $1.3-1.4 billion in losses in fiscal 2014-15, according to the Centre for Asia Pacific Aviation (Capa).
A tough operating environment and sluggish demand are among the reasons behind such massive losses.
The international aviation body also said IndiGo, India’s largest low-cost carrier, might float an initial public offering during the fiscal and raise $350-400 million.
IndiGo is also expected to announce an order for 200-250 planes to take care of its fleet requirement after 2025. At present, it has a 79-aircraft fleet and has placed orders for 186.

According to Capa, Indian airlines have accumulated losses of more than $10 billion over the past few years and a combined debt of around $20 billion.
The aviation sector would need at least $1.3 billion in fresh capital this year to stay afloat, Capa said.
Read news in full 27/06/14 Telegraph India
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