Wadia group-promoted Go Airline India Ltd (Go Air) has received a Rs 800 crore credit line from banks which will help the airline navigate through turbulent times that the aviation sector is facing due to the Covid-19 pandemic.
According to banking industry sources, the airline had applied for a debt restructuring under the Reserve Bank of India One Time Debt Restructuring Scheme that was announced in August 2020. However, with this credit line, the airline will not need to recast its loans.
“Banks have extended credit of Rs 700 crore – Rs 800 crore to the airline. This funding will be sufficient for the company for the next couple of years. This also means the airline will not need any debt restructuring,” a senior banker told Business Standard.
Go Air declined to comment on the story when contacted. “As a policy, GoAir does not comment on market speculation,” a company spokesperson said in response to an emailed query.