AIR IN­DIA TO PUR­CHASE SIX DREAMLINERS

SP's Airbuz - - News Briefs -

The govern­ment is plan­ning on sell­ing stake in Air In­dia, but the air­line is going ahead with its fleet ex­pan­sion plans and is seek­ing fi­nanc­ing worth $740 mil­lion for the pur­chase of six Boe­ing 787 Dreamliners. The air­line has in­vited of­fers from banks and fi­nan­cial in­sti­tu­tions to ar­range bridge fi­nanc­ing for the amount. Ear­lier in March this year, Air In­dia had sought $470 mil­lion from banks and fi­nan­cial in­sti­tu­tions to pur­chase four Dreamliners. Of the six now on or­der, three air­craft have al­ready been de­liv­ered, while the rest would be de­liv­ered by Oc­to­ber 2017. The govern­ment has now in­di­cated that they would is­sue guar­an­tee for all the six air­craft and Air In­dia is look­ing at re­fi­nanc­ing the bridge loan for the three de­liv­ered planes and in­terim bridge fi­nanc­ing for the rest for a pe­riod of 15 months. “In ad­di­tion to the govern­ment guar­an­tee, Air In­dia will of­fer the air­craft as se­cu­rity. The fa­cil­ity should be a di­rect loan with­out the re­quire­ment for for­ma­tion of a special pur­pose ve­hi­cle struc­ture, which re­quires ti­tle trans­fer,” the ten­der doc­u­ment said. As part of fleet ex­pan­sion plan, in 2006, Air In­dia had placed or­ders with Boe­ing for 68 air­craft. The list in­cluded 27 Dreamliners, 15 Boe­ing 777-300ER, eight Boe­ing 777-200LR and 18 Boe­ing 737-800.

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