Fraport drops demand for AI bank guarantee

NEW DELHI: Fraport, the German transport company that operates the Frankfurt International Airport, has dropped its demand for a bank guarantee from the Indian flagship carrier Air India immediately after a meeting with the airlines airport representative, an official in the company said.

Fraport had demanded a bank guarantee to secure its financial interests amidst the global crisis in the airline sector.

Air India executive director (corporate communications) Jitender Bhargava confirmed that Fraport had issued a letter to Air India seeking a bank guarantee.

But the Air India official argued that no bank guarantee was required as it is a Government owned airline.
���It dropped its demand next very day after the local representative met the airport officials,��� he said. Frankfurt is the international hub for Air India.

Mr Bhargava said that the matter was resolved at the local level itself. Air India���s chairman & managing director Arvind Jadhav was on a visit to Frankfurt in connection with Star Alliance membership. ���It is nothing to do with the bank guarantee issue,��� he said.