Air India extends deadline for bids as it awaits Rs 500 cr loans

Following a cold response from lenders, debt-laden Air India has extended the last dates for submission to October 31 for loans worth Rs 500 crore to meet its “urgent working capital requirements”. The deadline has been extended but could be closed earlier in case they receive at least three bids with the mentioned amount for loans, senior airline officials said.

The previous finalised deadline for submission of loan bids was set to October 10.

Air India’s debt burden stands approximately around Rs 50,000 crore and the national carrier is looking to raise Rs 500 crore loans to get “urgent working capital requirement”, as per a tender document.

The time-span for the government-guaranteed loans would be fixed for one year.

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Meanwhile, Air India on Monday gave Rs 100 crore to state-owned oil companies to clear some of the dues in relation to purchase of jet fuel, a senior official had said.

Earlier, the companies had asked Air India to clear off its dues towards daily billing amid rising oil prices.

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The Air India group comprising Air India, Alliance Air and Air India Express operates as many as 474 flights per day to 44 international and 78 domestic destinations.

(With inputs from PTI)