sbi
Industries in troubled times in India can usually look to the government for support in some manner.
That is, of course, if the industry is important to the politicians.
The airline industry, however, hasn't been lucky so far but have now found a new supporter for their cause—OP Bhatt, chairman of the State Bank of India (SBI).
Well, there's some motivation for the private airline operators. SBI, the country's largest bank, is supporting their demand for a direct bail out—a sort of a rescue package that would help them breathe and not bleed further.
India's bleeding private airline operators may have found a saviour, as they fight falling passenger traffic and mounting losses.
In an exclusive interaction with NDTV, SBI chief OP Bhatt said that the government should come forward and help the industry.
“The government has tried a helping hand for every industry including exports. If they do it for aviation, they would be able to get out of the woods,” Bhatt said.
The industry has suffered losses to the tune of Rs 10,000 crore with state owned Air India's losses alone running into nearly Rs 7000 crore.
Now, with the markets improving, Bhatt says the airline operators could look at tapping the equity market to raise funds.
“Airlines require equity and all of them are aware of it. The timing is right and so they are exploring the option,” he said.
The aviation industry might be looking at possible options in order to bail themselves out from this mess.
However, with most of the aircraft on lease and no improvement in traffic, finding collaterals for loans will be quite difficult.
Industries in troubled times in India can usually look to the government for support in some manner.
That is, of course, if the industry is important to the politicians.
The airline industry, however, hasn't been lucky so far but have now found a new supporter for their cause—OP Bhatt, chairman of the State Bank of India (SBI).
Well, there's some motivation for the private airline operators. SBI, the country's largest bank, is supporting their demand for a direct bail out—a sort of a rescue package that would help them breathe and not bleed further.
India's bleeding private airline operators may have found a saviour, as they fight falling passenger traffic and mounting losses.
In an exclusive interaction with NDTV, SBI chief OP Bhatt said that the government should come forward and help the industry.
“The government has tried a helping hand for every industry including exports. If they do it for aviation, they would be able to get out of the woods,” Bhatt said.
The industry has suffered losses to the tune of Rs 10,000 crore with state owned Air India's losses alone running into nearly Rs 7000 crore.
Now, with the markets improving, Bhatt says the airline operators could look at tapping the equity market to raise funds.
“Airlines require equity and all of them are aware of it. The timing is right and so they are exploring the option,” he said.
The aviation industry might be looking at possible options in order to bail themselves out from this mess.
However, with most of the aircraft on lease and no improvement in traffic, finding collaterals for loans will be quite difficult.
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