Air India still weak despite US$4.5b bailout

Mumbai

A US$4.5 billion taxpayer-funded bailout in 2012 and the delivery of Boeing Co Dreamliners haven't helped Air India Ltd elevate its third-place national ranking. Its bankers are showing they aren't impressed.

The national airline paid 180 basis points more than the London interbank offered rate on a US$300 million five-year loan in August. That's more than double the 70 basis points on a three-year facility for government-backed Rural Electrification Corp this month. It also exceeds the 96 basis points Indian companies pay on average for such loans, the lowest since 2007.