Mumbai: After staying away from the bleeding aviation sector, banks are gradually making a comeback, and looking at proposals from the sector as some carriers turn profitable. A consortium of six local banks led by the Central Bank of India are examinining a proposal by the Wadia Group-owned GoAir for a Rs 1,500 crore loan for fleet expansion.
Two bankers told Financial Chronicle, “The airline has plans to go international, for which it requires additional capital to fund its fleet expansion. We are assessing the proposal. Once all the banks in the consortium are satisfied with the financials, the banks will sanction the loan.”
According to the prevailing civil aviation rules, airlines operating for less than five years and a fleet of less than 20 planes cannot fly on international routes. The expansion will help GoAir, which has a fleet of 18 Airbus A 320s operating on domestic routes, overcome the fleet size-related restriction.
12/11/13 Manju AB/mydigitalfc.com
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Two bankers told Financial Chronicle, “The airline has plans to go international, for which it requires additional capital to fund its fleet expansion. We are assessing the proposal. Once all the banks in the consortium are satisfied with the financials, the banks will sanction the loan.”
According to the prevailing civil aviation rules, airlines operating for less than five years and a fleet of less than 20 planes cannot fly on international routes. The expansion will help GoAir, which has a fleet of 18 Airbus A 320s operating on domestic routes, overcome the fleet size-related restriction.
12/11/13 Manju AB/mydigitalfc.com
