Airline executives said that the fund will be used to make lease payments to induct new Boeing 737 Max aircraft and clear outstanding statutory dues like the employee provident fund. “This will take care of the survivability question of the airline once and for all,” said an airline executive.
At 9.49 am, the stock was trading 6.11 per cent higher at Rs 40.80 over its last day’s closing price of Rs 38.45 a piece. It touched the day’s high of Rs 42 on BSE. The stock has fallen nearly 30 per cent in the last six months, while it has plunged about 42 per cent in the past one year.
Civil aviation secretary Rajiv Bansal earlier this month, wrote to the finance ministry, asking that under the scheme, airlines be allowed to avail of additional debt of up to 100 per cent of their outstanding credit, subject to a cap of Rs 1,500 crore. ET had reported about the development in its 6 September edition.