 "Wadias offer land as collateral for GoAir loan")
The Wadia group has offered land worth Rs 913 crore in Thane, owned by group company Botanium Ltd, as collateral to avail of loan from banks. Banking sources said Botanium had offered corporate guarantee for the loss-making GoAir but banks insisted on more collateral.
The sources said banks in general have chosen to play very safe while giving loans to aviation companies, after their experience with Kingfisher Airlines which has defaulted on Rs 7,000-crore of loans. "This is not Go-Air specific; we have decided to ask all aviation companies to bring in more tangible collateral on the table," a banking source said.
When contacted, GoAir CFO Siddhartha Datta said the airline was adequately funded for its requirements, both present and future, to fuel its growth trajectory. “GoAir has met all its financial obligations to banks (interest and principal) and other creditors, including payments to fuel companies, lessors, the Airports Authority of India, employees and statutory dues,” he said.
The airline is owned by the Wadia family and enjoys total credit facilities of Rs 1,221 crore from Indian banks. These include long-term and short-term credit. It is said to be looking to raise Rs 150 crore as a short-term loan.
Besides land, the Wadia family has also pledged marketable equity shares of the listed Wadia group of companies. The group has three listed entities — Bombay Dyeing, Bombay Burmah and Britannia Ltd.
Vijay Mallya-owned Kingfisher Airline has failed to repay its loans to government-owned banks as it shut operations last year. Following the suspension of Kingfisher’s services, these banks are staring at a huge hole in their balance sheets.
According to public records, GoAir’s fleet consists of 11 Airbus A320s, with seating capacity of 180 each, and operates across 22 domestic destinations through 638 flights. The airline reported a total operating income of Rs 1,466 crore in 2011-12, compared with Rs 1,335 crore the previous year. It incurred a loss of Rs 134 crore in 2011-12, against a profit of Rs 60 crore the previous year.
The airline has financed all its aircraft through sales and lease-back agreements and managed an average load factor of 79 per cent in the first quarter of this year, compared with 76 per cent in 2011-12.
Meanwhile, GoAir sources said the airline was in active talks with a foreign partner to sell 49 per cent stake after the Indian government allowed foreign airlines to buy into Indian ones.
The sources said banks in general have chosen to play very safe while giving loans to aviation companies, after their experience with Kingfisher Airlines which has defaulted on Rs 7,000-crore of loans. "This is not Go-Air specific; we have decided to ask all aviation companies to bring in more tangible collateral on the table," a banking source said.
When contacted, GoAir CFO Siddhartha Datta said the airline was adequately funded for its requirements, both present and future, to fuel its growth trajectory. “GoAir has met all its financial obligations to banks (interest and principal) and other creditors, including payments to fuel companies, lessors, the Airports Authority of India, employees and statutory dues,” he said.
The airline is owned by the Wadia family and enjoys total credit facilities of Rs 1,221 crore from Indian banks. These include long-term and short-term credit. It is said to be looking to raise Rs 150 crore as a short-term loan.
Besides land, the Wadia family has also pledged marketable equity shares of the listed Wadia group of companies. The group has three listed entities — Bombay Dyeing, Bombay Burmah and Britannia Ltd.
Vijay Mallya-owned Kingfisher Airline has failed to repay its loans to government-owned banks as it shut operations last year. Following the suspension of Kingfisher’s services, these banks are staring at a huge hole in their balance sheets.
According to public records, GoAir’s fleet consists of 11 Airbus A320s, with seating capacity of 180 each, and operates across 22 domestic destinations through 638 flights. The airline reported a total operating income of Rs 1,466 crore in 2011-12, compared with Rs 1,335 crore the previous year. It incurred a loss of Rs 134 crore in 2011-12, against a profit of Rs 60 crore the previous year.
The airline has financed all its aircraft through sales and lease-back agreements and managed an average load factor of 79 per cent in the first quarter of this year, compared with 76 per cent in 2011-12.
Meanwhile, GoAir sources said the airline was in active talks with a foreign partner to sell 49 per cent stake after the Indian government allowed foreign airlines to buy into Indian ones.