Restructuring plan could save Air India $200 million

Mumbai: Loss-making national carrier Air India says it is implementing a financial restructuring plan which will cut its loan interest payments by nearly $200 million a year.
India's central bank last week approved a move to extend the tenure of loans to the state-run airline by five years, with repayment now due after 15 years.
Air India's bankers have "given the nod" to the restructuring programme, the company said late Tuesday after a meeting of the airline's board.
"The company is in the process of implementing the financial restructuring plan, which would provide a saving of 10 billion rupees ($192 million) a year in interest costs," the company said in a statement.
Air India also said that it plans to sell and lease out excess aircraft after taking delivery of new Boeing 787 Dreamliners into its fleet, with the aim of lowering debt that has ballooned to $9 billion.
30/11/11 AFP/Economic Times

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Categories: Air India Dec 2011