Bridge financing for the first batch of four new Boeing 787 aircraft, also known as Dreamliners, will be finalised by Friday, according to Air India officials.
Air India had invited banks and institutions to arrange bridge financing of up to $500 million to help finance the induction of the Dreamliners, one of which was inducted recently.
The airline will repay the bridge loan by selling and leasing back the aircraft, according to the tender document. “For sale and leaseback of aircraft, we have identified the parties,” said S. Venkat, Director of Finance, Air India.
The carrier has already tied up bridge finance for the first two aircraft.
Air India will be getting five more Boeing 787 aircraft by December. The first of the 27 Dreamliners ordered by the state-owned carrier made its maiden journey to Mumbai from Delhi on Thursday. The airline expects to receive the remaining 21 aircraft by 2016.
Despite a decrease in capacity by over 17 per cent due to strike by a section of pilots, Air India posted a 6.5 per cent increase in revenue during April-August 2012 compared to the year-ago period.
On the reinstatement of striking pilots, out of the total 413 pilots, who struck work, 316 have been taken back on duty. Out of remaining 97 pilots, whose services were terminated, 50 pilots have been recommended for reinstatement, five pilots have not been found suitable for reinstatement and the case of remaining 42 pilots is still under consideration.