05.03.2021 - 00:28 UTC
GoAir (G8, Mumbai Int'l) has received an INR8 billion rupee (USD110 million) credit line from banks, designed to help it cope with the ongoing aviation crisis, finance industry sources have told the Business Standard newspaper.
According to the sources, the airline applied for debt restructuring under the Reserve Bank of India’s “one-time loan restructuring scheme” for companies under Covid-related stress. The scheme, announced in August 2020, allows banks to restructure borrowers' loans that had been regular in their repayments and no later than 30 days overdue as of March 1, 2020.
However, with this credit line, the airline will not need to restructure its loans, the sources said.
“Banks have extended credit of INR7-8 billion to the airline. This funding will be sufficient for the company for the next couple of years. It also means the airline will not need any debt restructuring,” a “senior banker” told the newspaper.
Stressed companies in India have been finding it hard to restructure their loans, as banks have taken a hardline approach. A Reserve Bank of...
24.02.2021 - 03:14 UTC
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15.02.2021 - 05:48 UTC
Former executives of Jet Airways (JAI, Mumbai Int'l) are planning to launch a new Indian low-cost carrier before the end of Fiscal Year 2022, according to The Hindu Business Line.
The startup will be the brainchild of the former chief executive officer Vinay Dube and senior executive Praveen Iyer of Jet Airways before it collapsed in April 2019, the report said. It quoted multiple unnamed sources close to the pair, who claimed that “conversations were premature but, firm”. “The duo has started working on a roadmap for the airline. They plan to launch the airline before the end of next fiscal (year),” the sources said.
When contacted by ch-aviation, Iyer did not deny the report but declined to elaborate at this stage. He promised to reach out “at the right time”.
“The two will use at least six months in finalising the plan while applying for the necessary licenses,” the sources said. It was unclear if they would opt for domestic or regional routes, nor which aircraft were being favoured.
After Jet Airways, Iyer...
10.02.2021 - 17:59 UTC
GoAir (G8, Mumbai Int'l) has revived plans to raise cash, reportedly INR30 billion rupees (USD411.8 million), by launching an Initial Public Offering (IPO), an anonymous “top official” at conglomerate parent Wadia Group has told the Economic Times.
The low-cost carrier has been looking to go public since it first mooted the idea in October 2015 and has on several occasions opened negotiations with financial institutions on their possible role as underwriters. In this instance, it has allegedly appointed Citigroup, Mumbai-based ICICI Securities, and Morgan Stanley as the bankers, the source claimed.
This time around, however, the airline itself has so far refused to comment on the issue.
“We are looking at raising long-term funds and reducing debt. We have been told that given the current market sentiment it is the right time to raise resources,” the official told the newspaper.
Wadia Group, which besides fully owning GoAir also runs clothing, food, and property businesses, is likely to dilute 30% of its stake in the carrier, the source said.
GoAir has taken...
