Rs 10,000 cr! Airline industry's collective loss in FY12

The aviation minister Ajit Singh said debt-laden Kingfisher Airlines has still not paid oil company dues as well as Rs 279 crore airport charges to the Airports Authority of India, which includes landing and parking fees.

The minister said that barring Indigo, all airlines are incurring losses. In a reply to the Rajya Sabha he also noted that the airline industry is likely to post collective losses of Rs 10,000 crore in FY12.

[caption id=“attachment_296953” align=“alignleft” width=“380” caption=“FDI proposal is currently being examined by the Department of Industrial Policy and Promotion. AFP”]  [/caption]

Talking about the much-awaited proposal to allow foreign direct investment in the sector, he said the FDI proposal is currently being examined by the Department of Industrial Policy and Promotion. Once FDI in aviation gies through, cash-strapped airlines that are battling high fuel costs, rising taxes and fierce competition, can access funds more easily.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

Earlier CNBC-TV18 had reported that Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee, Commerce Minister Anand Sharma and Aviation Minister Ajit Singh are in favour of FDI but there are concerns within the government over the Mamata Banerjee-led Trinamool Congress (TMC) opposing the proposal.