Mumbai: Air India, saddled with debt, is now struggling to meet its working capital requirements as banks are unwilling to enhance its existing line of credit. This is sure to affect its growth plans, airline officials told FE.
The carrier, whose current working capital credit line falls between Rs 4,000 and Rs 6,000 crore, is looking to expand its long-haul operations, especially on routes such as North America, Australia and Europe. The airline is hoping to maximise revenues by increasing frequencies on busy international routes, apart from improving operational efficiencies across domestic and international routes.
“We have a working capital credit line of Rs 4,000-6,000 crore which we would like to enhance to meet our growth needs. But banks are averse to lending to the aviation sector pointing to the difficult times the industry has gone through in the past,” officials said, without specifying the additional capital required by the airline.
09/04/12 Pranav Nambiar/Financial Express
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The carrier, whose current working capital credit line falls between Rs 4,000 and Rs 6,000 crore, is looking to expand its long-haul operations, especially on routes such as North America, Australia and Europe. The airline is hoping to maximise revenues by increasing frequencies on busy international routes, apart from improving operational efficiencies across domestic and international routes.
“We have a working capital credit line of Rs 4,000-6,000 crore which we would like to enhance to meet our growth needs. But banks are averse to lending to the aviation sector pointing to the difficult times the industry has gone through in the past,” officials said, without specifying the additional capital required by the airline.
09/04/12 Pranav Nambiar/Financial Express
