AI to take up refinancing plan on Wed

New Delhi: The full board of Air India comprising independent directors would take up on Wednesday the proposals of ICICI, Standard Chartered and SBI to refinance the airline’s $1.15 billion loan to fund acquisition of 21 Airbus 321 aircraft. The board would also examine the financial restructuring plan prepared by consulting firm Deloitte Touche Tohmatsu India Ltd.
A consortium of banks led by IDBI had lent the company to acquire new airplanes. The airline is looking at reduction of interest rate on this loan by up to 2% to 9%.
A civil aviation ministry official said that Air India was looking at restructuring of the loan by securing government guaranteed convertible debentures/bonds. “But it’s something on which the finance ministry has to take a final call,” the official said.
The board of state-owned airline which comprises Mahindra and Mahindra vice-chairman and managing director Anand Mahindra and Ficci secretary general Amit Mitra would also empower the HR committee to finalise a uniform salary and career progression policy for the employees of erstwhile Indian Airlines and Air India.
Following the Cabinet nod to infuse Rs 1,200 crore of equity into the national carrier there is pressure on airline management as well as civil aviation ministry for improving Air India’s performance.
15/01/11 Nirbhay Kumar/Indian Express

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Categories: Air India Jan 2011