New Delhi: Indian airlines are expected to post lesser losses in 2014-15
than last year but their cash balances are at "dangerous levels", being
equivalent to less than three weeks' revenue, an aviation consultancy
said Tuesday.
"Airline cash balances are in some cases at dangerous levels", with the Centre for Asia-Pacific Aviation (CAPA) estimating that Indian carriers together had USD 585 million worth of cash in hand, with an annual industry turnover in excess of USD 10 billion.
"This represents the equivalent of less than three weeks revenue," latest CAPA India Aviation Outlook Report showed.
Maintaining that since almost 80 percent of the cash balances were accounted for by just two carriers - IndiGo and Jet Airways, it said the situation for some airlines was "even more precarious."
"One Indian carrier's cash in hand is understood at times to have dropped to the equivalent of less than one day's revenue and operations are being sustained by borrowing from travel agents against future ticket sales," the Sydney-based consultancy firm said without naming the airline.
Read news in full 01/07/14 PTI/ZeeNews
"Airline cash balances are in some cases at dangerous levels", with the Centre for Asia-Pacific Aviation (CAPA) estimating that Indian carriers together had USD 585 million worth of cash in hand, with an annual industry turnover in excess of USD 10 billion.
"This represents the equivalent of less than three weeks revenue," latest CAPA India Aviation Outlook Report showed.
Maintaining that since almost 80 percent of the cash balances were accounted for by just two carriers - IndiGo and Jet Airways, it said the situation for some airlines was "even more precarious."
"One Indian carrier's cash in hand is understood at times to have dropped to the equivalent of less than one day's revenue and operations are being sustained by borrowing from travel agents against future ticket sales," the Sydney-based consultancy firm said without naming the airline.
Read news in full 01/07/14 PTI/ZeeNews
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