Air India, Spicejet say banks need to reconsider lending to the airline industry

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Updated: February 10, 2015 2:50 PM

Air India, Spicejet say banks need to reconsider lending to the airline industry...

Air India, Spicejet, Air India banksS Venkat, director-finance, Air India, was vocal about his appeal to the banking sector to reconsider their decision. (Reuters)

At the recently held Centre for Aviation (CAPA) India aviation summit 2015, Indian carriers were vocal about their thoughts regarding the banking sector not actively considering the airline industry with respect to providing leading facilities and working capital to meet their long term capital requirements. The aviation industry in India did go through its share of turbulences but the business environment is changing and their is an element of positive reforms that is bringing back the confidence in this sector.

S Venkat, director-finance, Air India, was vocal about his appeal to the banking sector to reconsider their decision. He feels its time the banks reconsider their decision and provide the necessary working capital and meeting their long term capital requirements. He feels the aviation industry today is on the path of recovery with the drop in fuel prices and other supportive developments, the airline industry is trying to coming back to break even. His appeal was also seconded by Sanjiv Kapoor, COO, SpiceJet. They feel it was not right for banks to base their decision on the tough times that the industry faced in the  past and the banking sector should not be deterred by what happened to Kingfisher airlines few years ago.

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