http://www.livemint.com/Companies/PQxWoAwE2hJrgg6ULXqF9L/Indian-airlines-likely-to-pare-debt-by-14-in-fiscal-2016-r.html
Mumbai: With their sustainability at stake, India’s domestic airlines are expected to slash their combined debt toRs.58,000-60,000 crore in 2015-16 from Rs.70,000 crore in 2014-15 on account of lower fuel prices, said a study by rating firm ICRA Ltd released on Wednesday.
The study cautioned that the survival of many airlines hinges on their ability to reduce debt through better operating performance or by way of equity infusion.
In financial year 2015-16, Brent crude fell 28.14%.
In India, fuel costs account for about 45-55% of the revenue of domestic airlines and a 4% drop adds around two percentage points to the operating margin of airlines.
fleet mcap flap ratio
spicejet 34 40 bn 1.3
indigo 108 371 bn 3.7
jet 116 65 bn .7
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