Improved operating performance along with reduced losses, primarily due to reduced jet fuel prices, is estimated to have reduced the industry debt to Rs 580-600 billion as of March 2016 from Rs 700 billion as of March 2016, rating firm ICRA has said.
However, overall, the cash reserves of the airlines have dwindled and raising equity capital and re-financing debt obligations have become difficult for some carriers. Among airlines, full service carriers (FSCs) have been impacted the most, owing to their aggressive debt-funded capacity expansion plans, in-organic investments and higher fixed costs.
While ICRA expects the domestic airlines to continue to sustain the improved performance in FY2017, on account …
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