Air India reportedly announced a USD475 million bridge loan from Standard Chartered Bank to finance the acquisition of three B777 aircraft (The Economic Times, 11-May-2010). The interest rate is 375 basis points over LIBOR. The carrier is seeking a letter of comfort from the Indian Government to convert this short-term loan into a long-term loan to reduce interest costs. Air India received the first of the three B777s on 30-Apr-2010, with the next two deliveries due by the end of May-2010 and Jun-2010. The carrier’s fleet comprises 17 owned B777s and four leased B777s.
Air India announces USD475m bridge loan from Standard Chartered Bank
You may also be interested in the following articles...
Australia-India air travel market grows rapidly but SE Asian hubs hinder nonstop services
The Australia-India market has experienced rapid growth over the last three years, prompting Australia to lobby for more direct services. Visitor arrivals from India are up 50% since mid-2013, and total passenger traffic between the two countries is up approximately 30%.
Air India launched services to Melbourne and Sydney in 2013 but the Australia-India market is still dominated by Southeast Asian flag carriers. Singapore Airlines has been able to maintain a leading 41% share of the market. Malaysia Airlines also still carries more Australia-India passengers than Air India.
Attracting more nonstop flights from Air India, or the possible launch of nonstop flights to India by Australian carriers, will not be easy despite growing demand. Southeast Asia’s network airlines have a competitive advantage as they serve several gateways in both Australia and India. Southeast Asia’s growing medium/long haul LCCs have also started to compete in the Australia-India market and are well positioned to take a large share of the anticipated growth.