Rising inflation may aid debt-heavy aviation industry: IATA chief
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Tay Peck Gek
RISING Inflation, a growing concern globally, could actually “help” the debt-laden aviation industry as it reduces the real cost of debt, said Willie Walsh, the director-general of the International Air Transport Association (IATA).
He said: “You could argue that high inflation, given that the industry has taken on a lot of debt, could be turned into a positive (factor) because it reduces the real cost of debt. Inflation is always seen as a help when you have a lot of debt”.
He was responding to questions at a media roundtable on Monday (May 16) on which factors from elevated oil prices, inflation, rising interest rates or the spectre of a recession were of the greatest concern to the aviation industry.
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