Air India unfazed by ATA lawsuit

New Delhi: Officials of Air India say the debt-laded state-owned airline is unperturbed by a lawsuit opposing $3.4 bn extended by the US Exim Bank to buy the B-787, better known as the Dreamliner, as the loans are backed by a guarantee from the government.
The Air Transport Association of Amercia's or ATA had charged US Exim of providing loans "without considering whether Air India is able to offer assurances of repayment."But a top Air India official said the premise of the lawsuit was flawed because of the sovereign guarantee.
The airline has also said that it has never defaulted on any of its US Exim loans till date. Of the total loans guaranteed by US Exim, a sum of $ 593 million has been repaid till date from 2007 onwards, it said in an emailed response.
19/11/11 Anindya Upadhyay/Economic Times

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Categories: Air India Nov 2011, Foreign Nov 2011