Mumbai, September 08: The Reserve Bank has asked lenders to work out a special concessional package for the crisis-ridden aviation sector, reeling under financial debt burden of staggering 60,000 crore.
In response, banks said they would look into the problems of airlines on case-by-case basis.
The Indian airline industry is facing mounting debts due to the economic downturn and resultant excess capacity, which still exists. Of late, the industry has been showing signs of recovery, which could gather pace if banks restructure loans.
According to an estimate, the cumulative debt of the airline industry stands at about Rs 60,000 crore. As of March, 2010, Air India had about Rs 40,000 crore debt, while Kingfisher had a debt of about Rs 6,000 crore.
“The RBI has allowed in the case of aviation sector a special concession.
–Agencies