The Indian civil aviation industry has finally found some tailwind.
While SpiceJet on Wednesday received necessary approvals from the civil aviation ministry to continue operating under the new management led by Ajay Singh, Air India has decided to sell some of its real-estate to reduce debt.
The state-run carrier has decided to sell real-estate assets to bring down its outstanding debt, estimated at Rs40,000 crore.
Interest payments on loans taken for buying aircraft stood at Rs3,800 crore. Losses suffered for the previous year amount to Rs36,000 crore.
Ever since the 2007 merger with Indian Airlines, Air India has never turned a profit. AI flies a combined fleet of both Boeing and Airbus planes, considered neither efficient nor an industry practice.
Filing for major orders in 2005 and 2006 has seen its debt grow disproportionate to its scale of operations, and today it has one of the most-skewed staff-to-aircraft ratio.
Currently, AI's fleet stands at 108 planes, comprising Boeing and Airbus planes, with about 23,500 employees on the rolls.
22/01/15 Kuganandhan Paramanandan/International Business Times
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While SpiceJet on Wednesday received necessary approvals from the civil aviation ministry to continue operating under the new management led by Ajay Singh, Air India has decided to sell some of its real-estate to reduce debt.
The state-run carrier has decided to sell real-estate assets to bring down its outstanding debt, estimated at Rs40,000 crore.
Interest payments on loans taken for buying aircraft stood at Rs3,800 crore. Losses suffered for the previous year amount to Rs36,000 crore.
Ever since the 2007 merger with Indian Airlines, Air India has never turned a profit. AI flies a combined fleet of both Boeing and Airbus planes, considered neither efficient nor an industry practice.
Filing for major orders in 2005 and 2006 has seen its debt grow disproportionate to its scale of operations, and today it has one of the most-skewed staff-to-aircraft ratio.
Currently, AI's fleet stands at 108 planes, comprising Boeing and Airbus planes, with about 23,500 employees on the rolls.
22/01/15 Kuganandhan Paramanandan/International Business Times
