Indian airlines' loss to narrow in 2010: IATA

The combined loss of Indian airlines will shrink in 2010 but their huge debt burden is a matter of concern, International Air Transport Association (IATA) Giovanni Bisignani said. The international trade body for the aviation industry expects Indian airline companies to narrow their combined loss to US$400mn in 2010 from a combined loss of US$1.7bn in 2009, Bisignani said in New Delhi. "Private Indian airlines are now reporting profits, or at least shrinking losses. In the face of major challenges, the Air India situation is also improving," Bisignani said. Bisignani also said that the Government of India should consider allowing foreign investment in Indian airline companies. "Relying only on domestic sources limits competition and could lead to an investment gap. Moreover, the insular approach cuts India off from global expertise and global trends," he said.