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Aparna Kalra
New Delhi, Apr 4: Air India (AI) has deferred plans for its $100-million securitisation deal on future ticket recievables in the US. The decision is based on two factors-according to the airline, market conditions are not right at present. Plus, AI does not need the funds from the deal in the near future.
"AI has no immediate plan to push the securitisation deal as there is no pressing need for funds. We are not holding road shows in the immediate future. When the timing is right and we need funds, we will move ahead with the deal," said A-I spokesperson Jitendra Bhargava. He said AI had got the comfort letter from the Government and other necessary clearances only to keep the decks cleared for the proposed securitisation deal.
The finance ministry has issued the comfort letter last month. The deal was rated BB+ by Duff & Phelps Credit Rating Company and BB by Standard & Poor. Both are below investment grade levels. It was speculated in Government circles that roadshows would soon be organised with civilaviation ministry officials set to go abroad to study US and Singapore markets. The proposed deal is one of the ways that the cash-strapped airline had hit upon for generating funds. Other planned sources include sale of Boeing 747-200 aircraft, re-negotiation of productivity linked allowance to lower wage bills and rationalisation of properties and premises. The airline board last week gave the go-ahead for selling three Boeings. AI also has been trying to get its unions see reason on the PLI issue. Managing director MP Mascarenhas had several rounds of discussions with the unions to bring down the PLI bill. The state-owned carrier has also undertaken a route-rationalisation programme. It has withdrawn from several European destinations like Rome and Frankfurt, reducing its presence to London, Manchester, and Paris. A-I is set to end the year with an over Rs 200-crore loss. It has recorded a net loss of Rs 199 crore during April-December 1998.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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