Canada Offers Loan To Ia For Bombardiers
The Canadian Export Development Corporation has offered Indian Airlines a 100 per cent interest free loan if it buys fifty-seater craft from the Canadian aircraft manufacturer, Bombardier.
Indian Airlines plans to acquire six fifty-seater craft for its feeder routes as part of a Rs 300-crore fleet expansion programme. It had almost finalised a deal with France's ATR over Saab and Dash-8.
However, the French Export Credit Agency is willing to extend a loan of only 50 per cent of the total cost. Moreover, besides the interest, the Indian Airlines will have to bear the guarantee costs to get a competitive rate in the market.
The civil aviation ministry had earlier decided to provide only about 10 per cent of the cost of buying the craft as margin money. The rest was to be added to the debt component in the company's balance sheet.
Another reason the Indian Arlines is looking for cheaper options is because the planes are to be used in the feeder routes with low returns which will extend the breakeven period for the project.
However, the Indian Airlines is not satisfied with the technical specifications of the Canadian firm. IA had earlier decided to dry lease the aircraft and had asked banks to submit bids for financing the same. But with the new offer they are withholding their final decision.