Global financial crisis to affect corporate air travel: Nacil

Global financial crisis to affect corporate air travel: Nacil
PTI
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First Published: Sat, Oct 11 2008. 06 13 PM IST
Updated: Sat, Oct 11 2008. 06 13 PM IST
Mumbai: Corporate air travel in the country is likely to decline in the wake of the financial meltdown in the US and some European economies, a top official said.
“The financial crisis in some overseas developed economies is bound to lead to a drop in corporate travel here. This is already visible abroad and will have its impact in India as well. Airlines here will also face a drop in corporate travel,” National Aviation Company of India Ltd’s (Nacil) Chairman and Managing Director Raghu Menon said.
India would be no exception to what was happening globally, he told reporters on the sidelines of a function.
“I think the same problems afflicting other airlines globally would also affect us,” he said.
Another problem confronting airlines was that of non-availability of easy credit, the Nacil official said. “If banks are unable to lend us money that would also be a problem.”
However, Nacil’s operations would not be affected by the ongoing financial crisis and there would be no job-cuts, he said.
“As far as Air India (of which Nacil is the holding company) is concerned, we have strong fundamentals and I don’t see any question of grounding any of our aircraft,” he said.
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First Published: Sat, Oct 11 2008. 06 13 PM IST
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