Air India will, for the first time, raise $330 million (Rs 2,000 crore) through the external commercial borrowings (ECB) route. The money will spent on aircraft maintenance, said civil aviation ministry officials.
“Once this money is raised, Air India will utilise it on improving fleet maintenance,” said officials. At any point of time, Air India has only 52-54 of its narrow body aircraft in working condition, in an overall fleet strength of 62 aircraft. Air India has hived off its aircraft maintenance, repair and overhaul services division into a separate subsidiary, which now provides services to other airlines too. The money raised will be utilised by this subsidiary.
Air India is raising the money through a consortium of two to three banks. Due-deligence has been done and processes have been followed. “We have already negotiated with banks,” said officials. The money is expected to flow in anytime now. The government will be the guarantor for the loans, said the officials.
23/07/15 fe Bureau/The Financial Express
To Read the News in full at Source, Click the Headline
“Once this money is raised, Air India will utilise it on improving fleet maintenance,” said officials. At any point of time, Air India has only 52-54 of its narrow body aircraft in working condition, in an overall fleet strength of 62 aircraft. Air India has hived off its aircraft maintenance, repair and overhaul services division into a separate subsidiary, which now provides services to other airlines too. The money raised will be utilised by this subsidiary.
Air India is raising the money through a consortium of two to three banks. Due-deligence has been done and processes have been followed. “We have already negotiated with banks,” said officials. The money is expected to flow in anytime now. The government will be the guarantor for the loans, said the officials.
23/07/15 fe Bureau/The Financial Express
