A loan of Rs 1,500 crore to expand GoAir's fleet of aircraft is being examined by a consortium of six local banks, led by the Central Bank of India. GoAir is owned by the Wadia Group. With this, one can hope that banks are gradually making a comeback to lend airline companies, after staying away from the bleeding aviation sector.
According to experts in bank sector, the airline has plans to go international, for which it requires additional capital to fund its fleet expansion.
The consortium of banks is assessing the proposal. Once all the banks in the consortium are satisfied with the financials, the banks will sanction the loan.