Air India plans to raise working capital by Rs 1,000 cr

New Delhi: After getting the approval for Rs 800 crore equity infusion from the government, loss-making Air India is now planning to raise its working capital by Rs 1,000 crore in the near future.
A decision to this effect is understood to have been taken at a Board meeting of the National Aviation Company of India Limited (NACIL), which runs the national carrier, here today, informed sources said.
The decision would help the airline to raise resources from the market to fund its fleet acquisition as well as other operational costs.
As part of its cost-cutting measures, NACIL has been in negotiations with several state-run banks for some months now to avail loans of about Rs 1,500-2,000 crore on its working capital to convert its high-cost debt into low-cost.
The cash-strapped carrier already has over Rs 16,000 crore working capital borrowings on its balance sheet, coupled with around Rs 7,200 crore expected losses in the last fiscal.
20/02/10 Press Trust of India/Business Standard

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Categories: NACIL Feb 2010