According to the experts who are aware of the situation informed that Tata Group-owned Air India has secured fresh loans and refinancing debts of Rs 14,000 crore from the State Bank of India and Bank of Baroda. The amount of Rs 1,500 crore has been obtained through the Emergency Credit Line Guarantee Scheme (ECLGS), and Rs 12,500 crore through the refinancing of the existing loans. The Emergency Credit Line Guarantee Scheme (ECLGS) was initially designed to aid small businesses during the Covid-19 pandemic but eventually expanded to other businesses also.The funds will help the airline to expand its business into both domestic and international markets with leased aircraft and new planes. A part of the amount is also likely to be used to fund the voluntary retirement scheme (VRS) payouts, which are likely to cost over Rs 200 crores. All permanent general cadre officers who are at least 40 years old and have at least five years of continuous service with Air India have been allowed to apply for the new round.A few weeks ago, Air India has placed a firm order of 470 aircraft under their expansion plan from Boeing and Airbus. The airlines consolidated financial accounts for Financial Year 2022 reveal that its overall debt decreased to Rs 15,317 crore in Financial Year 2022 from Rs 45,037 crore in Financial Year 2021.The Tata group purchased Air India, Air India Express, and ground handling service provider AI SATS from the government in January 2022 for a cash payment of Rs 2,700 crore and the assumption of the national carriers debt of Rs 15,300 crore. The six-month marginal cost of funds-based lending rate (MCLR) of State Bank of India is the benchmark for the loans from State Bank of India and Bank of Baroda, and they have priced 50 basis points (bps) more than it, according to the report.Air India going through other changes alsoAir India Express and AirAsia have moved to a unified reservation system, wherein customers can make bookings for both airlines through a unified website. Along with this company is also planning for salary hikes.Air India to announce salary hikeAirline employees, notably pilots, and cabin crew are in higher demand as carriers in India ramp up operations and move through with growth ambitions. Several airline employees changed employers last year because, in the post-COVID period, numerous carriers offered better pay. Air India requires talent from all divisions to assist the growth if it is to grow considerably. Also, according to the most recent rumours, it is prepared to raise employee compensation.According to reports, as the battle among airlines to acquire the top industry personnel heats up, Air India may announce a compensation increase across various departments. The initiative, which will initially focus on pilots, may provide them with an increase of between 8 and 10 percent and bring them up to speed with international norms.As per reports, a person familiar with the matter said that Air India may roll out the first round of salary hikes in a couple of months. Pilots will be the first ones to get the salary hike and corrections in the salary will also take place for the cabin crew and other officers. The hike has been planned to assure that the pilots have a vision in Tata Group-owned Air India. It is expected that doing this pilot will have confidence in the group while other companies are hiring.Air India is not the only one to hike the salaries. Over the past few months, other airlines have gradually offered the pay hikes.
