Air India asks lenders to cut interest rates on loans
Saddled with total debt of around INR460b, Air India has written to 16 of its lenders to cut interest rate on its loans by up to 2 percentage points, in line with the reduction in rates in the market. The airline is also in talks with state-owned infrastructure company NBCC and Ministry of External Affairs to sell around 98 of its properties spread across India and some overseas. While reduction in interest rates reduce its costs, monetisation of assets would help pare it short-term borrowings. If bankers accept its request, it would bring down its interest cost to around 8.5% from over 10% at present, a senior Air India official said. “This would result in annual savings in interest costs of about INR2b on loans of around INR150b,” the official said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-04-12/star/air-india-asks-lenders-to-cut-interest-rates-on-loans
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Air India asks lenders to cut interest rates on loans
Saddled with total debt of around INR460b, Air India has written to 16 of its lenders to cut interest rate on its loans by up to 2 percentage points, in line with the reduction in rates in the market. The airline is also in talks with state-owned infrastructure company NBCC and Ministry of External Affairs to sell around 98 of its properties spread across India and some overseas. While reduction in interest rates reduce its costs, monetisation of assets would help pare it short-term borrowings. If bankers accept its request, it would bring down its interest cost to around 8.5% from over 10% at present, a senior Air India official said. “This would result in annual savings in interest costs of about INR2b on loans of around INR150b,” the official said. <br/>
