Air India in talks with PSU banks for working capital loans
National carrier Air India is understood be in negotiations with state-run banks to avail working capital loans at low interests, Air India sources said.india Updated: Oct 07, 2009 19:30 IST
National carrier Air India is understood be in negotiations with state-run banks to avail working capital loans at low interests, Air India sources said.
"We are talking to some banks to avail working capital loans in the range of Rs 1,500-2,000-crore," airline sources said in Mumbai Wednesday.
Negotiations are on with public sector banks like the Syndicate Bank, the sources said, adding, the loans are being sought to carry out day-to-day operations of the carrier.
The cash-strapped carrier already has over Rs 16,000 crore working capital borrowings on its balance sheet, coupled with around Rs 7,200 crore expected losses for this year.
As part of its cost-cutting measures, the airline has been in talks with the banks to convert its high-cost debt into low-cost ones. Meanwhile, Air India has released productivity-linked incentives (PLI) and flying allowances of its 31,000-staff including pilots for July.
The airline management in June had requested its senior officials over the rank of General Managers to forego their July salary, PLI and flying allowances in view of the financial crisis facing the company.