A-I gets 100 mn debt facility

MUMBAI, OCT 26: Despite a high short term debt of Rs 1,100 crore, loss-making airline Air-India signed yet another 100 million Rs 443 crore term loan facility under the Foreign Currency Non-Resident B scheme with Bank of Baroda and Bank of India. The airline, which is expected to rake in a net profit of Rs 2 crore in the first half of current fiscal, will get the loans in two tranches of 50 million each.

The banks have been offered hypothecation of two Boeing 747-200s and one 747-300 aircraft. The loan will have to be repaid at the end of 24-30-36 months from the date of drawal of the facility. The airline was earlier planning to securitise its receivables in the Mumbai-New York sector for the next two years with the bank, but the plan could not take off. The airline has availed of the loan at an attractive interest spread.