AirAsia India hikes borrowing limit by ₹1,000 cr to maintain its fleet

With hopes of getting a bailout package for the airline industry diminishing, AirAsia India has increased its borrowing limit by ₹1,000 crore to ensure it continues to pay leasing and parking charges for its grounded aircraft.

AirAsia India is learnt to be the first domestic airline to formally increase the borrowing limit. The decision to increase the limit from ₹500 crore to ₹1,500 crore was taken at a recent meeting of the shareholders. AirAsia India is a joint venture between Tata Sons, which owns 51 per cent in the airline, and AirAsia Berhad. The special resolution was approved to carry out “existing and future financial requirements to support its business operations”, according to to data intelligence platform paper.vc.