Airlines to post Rs 10k cr loss in FY12: Ajit Singh

Aviation Minister Ajit Singh says the airline industry is likely to post collective losses of Rs 10,000 crore in FY12, but Indigo is profit making. Airlines in the country are unable to meeting their operating cost due to spiralling fuel cost and predatory pricing.

He also said that Kingfisher Airlines has not paid oil companies dues and even landing and parking fee to the Airports Authority of India (AAI) wihhc is approximately Rs 280 crore..

On the dleayed decision on FDI in the aviation sector, he further informed that the proposal to allow foreign direct investment (FDI) in the sector is being examined by Department of Industrial Policy and Promotion (DIPP)

Earlier CNBC-TV18 had reported that  Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee, Commerce Minister Anand Sharma and Aviation Minister Ajit Singh are in favour of FDI but there are concerns within the government over the Mamata Banerjee-led Trinamool Congress (TMC) opposing the proposal.

But if FDI is allowed in the aviation sector, it would allow cash-strapped domestic airlines like Kingfisher Airlines to access funds more easily. Indian airlines have been battered by rising fuel costs, high taxes and fierce competition in a market where five of the six main operators are losing money.