Air India Loan: This time Tatara is taking a loan of 18,000 crores from the government bank, what are the plans? –

Air India Loan: Air India has decided to borrow from government banks for one more year. According to sources, Air India will take loans at a higher interest rate than last time due to the high cost of loans. It is learned that Tata-owned AJR India will borrow a total of Rs 18,000 crore from State Bank of India (SBI) and Bank of Baroda (BoB) to refinance the loan taken for one year.

In January 2022, Tata Sons borrowed Rs 10,000 crore from SBI and Rs 5,000 crore from BoB at an interest rate of 4.25%. But in the meantime RBI has hiked interest on loans by 225 basis points in the last one year. As a result, the interest rate on Tatas’ loans has increased to 6.50 percent.

A person familiar with the matter said that even though Air India has been taken over by the Tatas, it is still undergoing restructuring. The Tatras want to clear all their formalities before looking at a banking partnership. which will be the foundation of the organization.

Currently Tata Group is working to bring all the airlines under one umbrella including Air Asia, Vistara. Tatas have a joint venture with Singapore Airlines. Discussions are going on in that regard as well. The Tatas will hold a 25% stake in the Singapore carrier after the talks are completed.

Investment plan for new aircraft

According to a report, Air India had a loss of Rs 93,473 crore till the end of March 2022. However, after coming into the hands of the Tatas, the target of turnover has been taken. That is why several plans are underway. Recent reports suggest that the airline is planning to invest in new aircraft, as well as refurbishing older ones. Work will also be done on overhauling the system and its network. As per the new plan, Air India aims to triple its fleet to 113 aircraft in the next 5 years.

On the other hand, Go First Flight was recently fined Tk 10 lakh by the country’s civil aviation authority DGCA. It has been claimed that the airline lacked communication with passengers. It is said that the company did not have as many aircraft as it should have for Northeast India. The company was fined for failing to do so.

Leave a Comment