Funding crunch likely to continue in domestic aviation sector, says RBI's financial stability report

MUMBAI: The crisis-hit domestic aviation sector is expected to face continual problem of funding and could also be hit by current policy uncertainties, as expressed by Reserve Bank of India in its financial stability report.

The report said, “asset quality of banks' credit to the airlines industry came under some stress in recent periods, driven largely by the performance of some specific airlines.”

The three listed airlines -- Jet, Kingfisher and SpiceJet – registered Rs 1,698-crore accumulated losses during the March quarter. Debt-ridden Kingfisher alone reported a huge loss of Rs 1,151 crore on account of higher fuel prices, irrational taxes and mounting airport charges.