Having failed to receive suitable offers for long-term low interest loans to refinance its aircraft purchases, Air India today said it had extended the deadline for submission of proposals to July 16.
NACIL, which runs Air India, had last month invited Request for Quotations (RFQ) for long-term loan of USD 1150
million to refinance the purchase of 21 aircraft and spares at low interest rates.
Earlier, the last date for submitting the RFQ was June 21, which has now been extended till July 16, according to
airline sources.
The last of the 21 Airbus aircraft, mostly of the A-320 family, was delivered in April this year.
The earlier loan for aircraft purchase was taken from scheduled Indian banks and financial institutions with 100 per
cent government guarantee.
Air India, which has embarked on a turnaround plan, wants to restructure its debt by way of refinancing, getting loans
at low interests and other means.
The recently-constituted internal audit committee, headed by business leader Harsh Neotia, is understood to have
suggested a complete overhaul of the airline's unsecured debt as well as debt taken to fund its ambitious fleet acquisition
plan. Neotia was recently appointed an independent member of the Air India Board.
Air India's current debt stands at Rs 233 billion. It is paying an interest of 11 per cent on the Airbus loan which it
wants to bring down to around eight per cent as part of the restructuring exercise.
Air India's current debt stands at Rs 233 billion. It is paying an interest of 11 per cent on the Airbus loan which it
wants to bring down to around eight per cent as part of the restructuring exercise.
The airline had placed a total order for the purchase of 111 aircraft both from Boeing and Airbus in 2006.
Air India is estimated to pay Rs 22,000 crore for aircraft deliveries this year, against Rs 12,000 crore last year.