Mumbai: Low-cost carrier IndiGo has sought Reserve Bank of India's nod to raise $849 million (Rs 4,661 crore ) loan to finance purchase of planes indicating a possible shift in its aircraft acquisition strategy.
IndiGo operates 64 single class airbus A320 planes on 38 domestic and international routes. The airline has on order 280 airbus A320s on order including 150 A320neo. These planes will be delivered till 2024. The planes were ordered in two separate deals valuing over $21 billion at list prices.
According to industry sources all except four planes in its present fleet have been acquired on an sale and lease back basis or an "operating lease'' for six-seven years and this has helped the airline to limit debt and control maintenance cost.
Indicating a change of strategy, IndiGo has made an application to RBI to raise funds through external commercial borrowing route. Information on the RBI website reveals that the loan will be used for "import of capital goods'' and will be for term of 14 years.
02/03/13 Aneesh Phadnis & Abhijit Lele/Business Standard
