It is not just India’s state carrier Air India that is debt-laden but airlines around the world are taking a hit at their profitability because of three important factors.
In an interview with CNBC-TV18, Minister of State for Civil Aviation Jayant Sinha said that higher oil prices, currency fluctuations and higher interest rates have sharply brought down the profitability of airlines around the globe.
“If we look around the world how airlines are doing, especially the full-service carriers, you will see that higher oil prices, currency fluctuations and higher interest rates have sharply brought down the profitability,” Jayant Sinha said.
On failing to get any buyer for beleaguered Air India, Jayant Sinha said that the (aviation) industry dynamics is such that people are not enthusiastic about the disinvestment. He said that market conditions were not conducive enough to elicit interest. Read More