Aviation Finance Corporation (AFC), an SPV providing dedicated capital, can be set up by the government to facilitate lower interest rates and longer maturity of loans. Private airport operators should be allowed to issue long term non-taxable infrastructure bonds to raise the required funding from the market. RBI limits on sectoral funding should be eased, thereby removing the current compulsion for airport developers to raise required funds/debt from multiple banks, making process time consumi
Tag: Air India
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AI’s Dreamliner fleet to remain grounded till Feb 17
Newly bought six Boeing 787 Dreamliners of Air India would remain grounded till February 17, with further delays expected in the tests being carried out by US and Japanese authorities on the faulty lithium ion batteries used in the aircraft. This means that the newest aircraft in the airline fleet will remain grounded for a month as it was on January 17 that Air India had grounded its Boeing 787 fleet, after the DGCA issued a directive following an advisory by the US regulator Federal Aviation A
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Air India may soon become a member of Star Alliance
Air India's Director (Commercial) GD Brara will meet Star Alliance bosses in Frankfurt, Germany, this week to join Air India as a member of the prestigious Alliance. The Indian government-owned carrier had been waiting for years to join the Star Alliance. It may happen within a few months.
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SpiceJet, AI cut fares, budget carriers may follow suit
Now, a silent fare war among Indian airlines is appears to be on. SpiceJet's recent mega sale has triggered a tussle between other Indian airlines who are dropping fares discreetly. Air India dropped fares on January 21 night, taking them lower than rival full-service carrier Jet Airways and matching the prices of the three budget carriers on every route.
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Air India concerned over FDI in aviation
Indian State-owned Air India has warned the Union government that allowing investments by foreign airlines will hurt the interests of domestic airlines and prevent Indian airports from developing into international hubs. The government should study the potential impact of such investment on the domestic aviation sector as a whole, Chairman and Managing Director (CMD) Rohit Nandan wrote in a letter to Aviation Secretary KN Srivastava in December, sources said.
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Air India to repay part of debt by raising funds
In order to reduce its interest outgo on the current dues, Air India plans to repay some of its debt that carry high interest rate. As part of this initiative, the airline plans to borrow Rs 900 crore from banks through issue of bonds. The amount would be used to repay a part of its debt. Air India is said to owe around Rs
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Separate Biz for AI?
In a bid to turnaround Air India, the civil aviation ministry is seeking government approval to hive off aircraft maintenance.
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AI to spin off MRO
National carrier Air India (AI) plans to spin off maintenance, repair and overhaul (MRO) engineering operations by April to earn about Rs 3,000 crore annually through the engineering division.