Air India gets Rs 1,500-cr loan from Bank of India

Air India gets Rs 1,500-cr loan from Bank of India

Debt-laden Air India has received a loan worth of Rs. 1,500 crore from Bank of India to meet urgent working capital needs less than a month after floating a tender in this regard, an airline source said. For the second time in recent months, the flagship carrier has received loans from a public sector lender.

Battling multiple headwinds, the disinvestment-bound airline has been working on ways to reduce its debt, including by way of selling non-core assets and expanding operations. The source said the airline has received Rs 1,500 crore loan from Bank of India after the tender for the amount was floated last month in order to meet “urgent” working capital needs. A tender was issued by the carrier on October 18 in which it had sought government guarantee-backed short-term loans totalling up to Rs 1,500 crore to meet “its urgent working capital requirements”.

Prior to that, the airline had borrowed around Rs 3,250 crore as short tenure loans from two lenders — IndusInd Bank and Punjab National Bank, sources had said. This loan too was for meeting urgent working capital needs and the tender was floated in September. In the last nearly three months, at least two public sector lenders — Bank of India and Punjab National Bank — have provided loans to the airline.

As part of efforts to revive the ailing carrier, which has a debt burden of more than Rs. 50,000 crore, the government is in the process of finalising the contours of its strategic disinvestment. Air India is surviving on taxpayers’ money under the bailout package extended by the previous UPA government in 2012. As part of the turnaround plan, the national carrier is to receive up to Rs 30,231 crore from the government over a ten-year period subject to meeting certain performance thresholds.

The Air India group flies to 44 overseas and 75 domestic destinations. There are flights to Copenhagen, Tokyo, Washington, Stockholm, Sydney, Hong Kong, Kabul, Colombo, Seoul, Singapore and London, among other foreign cities.

About author

TnH Global
TnH Global 4048 posts

Our platform is the most comprehensive, current and accurate content destination for tourism that also offers the opportunity to connect and network with quality buyers and sellers.

Name: TnH Global              Email: admin@tnhglobal.com

You might also like

Latest

Enjoy chef crafted fresh bake of the hourat Courtyard by Marriott Bengaluru Outer Ring Road

Do you have a sweet tooth? Do you adore desserts that take taste to a culinary greatness? Well then you are going to marvel at our ‘Strudels and Pies’ freshly

Latest

Marriott CFO to Retire on December 31, 2015

Carl Berquist, Marriott’s executive vice president and chief financial officer for the past seven years, will retire as CFO on December 31, 2015, remaining with the company as a special

Latest

Jordan Tourism Board announces launch of “Art Destination Jordan”

The Jordan Tourism Board in partnership with Universes in Universe – Worlds of Art has announced the launch of “Art Destination Jordan” a look at the art scene in the

Aviation

SriLankan Airlines announces big discount bonanza in November for Indian travellers

Great discounts on Business & Economy class tickets to be rolled out on 11th November SriLankan Airlines, the National Carrier of Sri Lanka and a member of the oneworld alliancetoday

Slider

Asia-Pacific’s largest travel trade show, OTM begins in Mumbai

The largest Asia Pacific travel show was inaugurated by K J Alphons, Minister of State for Tourism (I/C), Government of India The event will be witnessing 300 hosted buyers and

Latest

Desi Explorers on the move – Indian Tele Stars explore Jordan on the ultimate road-trip!

The Indian television celebrities got a break off their busy schedule to travel to the beautiful country of Jordan. A group of five television celebrities: Vishal Singh, Suyyash Rai, Kishwer

Festive soft opening for DUKES Dubai

Five-star hotel to open its doors on 28th December adding a quintessentially British flavour to Dubai’s yuletide celebrations! Dubai’s premium hospitality offering will receive a great British boost this month

Latest

Mandarin Oriental announces a new project in Muscat

Mandarin Oriental Hotel Group has announced that it will manage a new resort and branded residences in Muscat, the capital of Oman, which is expected to open in 2021. Mandarin Oriental,

Latest

SATTE 2017 to showcase renowned travel and tourism brands

SATTE works closely with travel associations, organisations and media houses! UBM India is all set to host the 24th edition of SATTE, one of South Asia’s leading travel trade shows,

Destinations

Kenya eyes 12-15% growth in footfalls from India in 2018

Kenya Tourism Board (KTB), in partnership with 10 members of the Kenya travel trade, participated in the Outbound Travel Mart (OTM) 2018 in Mumbai, India. KTB showcased Kenya’s authentic experiences

RezLive.com appoints “African Origin Travels & Sports Tourism” as its General Sales Agent in Ghana

RezLive.com, a product of Travel Designer Group, appointed “African Origin Travels & Sports Tourism” as its exclusive General Sales Agent (GSA) for Ghana. RezLive.com is a B2B global reservation system

Slider

Qatar Airways hastens India push, plans 100 new jets amid Modi’s aviation drive

Qatar Airways is hopeful that Narendra Modi-led govt will permit 100% foreign ownership of a domestic airline in India. Qatar Airways Ltd may order 100 new jetliners before the end

0 Comments

No Comments Yet!

You can be first to comment this post!