Advisory body urges “significant investment” by foreign companies
The Indian airline industry is likely to suffer a $20 billion debt burden for the period of 2011-12. In order to remedy this dire situation, the country’s Planning Commission has recommended in its “12th Plan” for the sector that airlines should receive “significant and continuous investment” by foreign airlines as well as reduced taxes on aircraft fuel aircraft leases, airport charges and other payments.
Around half of the $20 billion debt is aircraft related; the rest is related to working capital loans and payments to airports and fuel companies.
The Economic Times
[pictured: Kingfisher airlines, taxing in Bangalore Airport, India; photo by Marirs]