Saturday, October 14, 2006

Air Deccan signs deal with European banks

Bangalore: Air Deccan, the country's second largest airline, on Friday announced it has signed a deal with two European banks to raise $ 100 million (Rs 450 crore) to help ensure its financial stability and insulate it from the "turbulence" in the domestic aviation industry.
India's leading low cost airline, which had reported a loss of Rs 340 crore for the 15-month period ended June 30, has already received the first tranche under the deal with Investec Bank, UK, and HSH Nord Bank AG of Germany, Deccan Aviation Managing Director Capt Gopinath told reporters here.
Under the deal, Rs 450 crore including an upfront payment would be payable in four tranches over 15 months to Air Deccan subject to compliance of certain financial covenants, Gopinath, who termed the deal "innovative", said.
14/10/06 PTI/The Hindu
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