Air India plans to raise a bridge loan of upto $350 million to finance the acquisition of three more Boeing 787-800 aircraft from an ongoing order.
The three ‘Dreamliner’ aircraft will be added to the state owned carrier’s fleet by the first half of 2015.
The bridge loans will be refinanced through either through a sale and lease back arrangement or an outright purchase, sources close to the development told Business Line. A sale and leaseback is common practise in which airlines sell their planes to a lender and then lease the same planes for a fee.
AI is set to invite offers from banks or financial institutions to arrange the bridge financing for a period of six months to one year, they added.
The national carrier had placed orders for 68 aircraft with Boeing in January, 2006. This included 27 Dreamliners and 41 B-777s and B-737-800s. It had taken the delivery of the first 787 Dreamliner in September, 2012.
It may be recalled that German lender Deutsche Bank UK’s Investec Bank had stuck a deal with Air India earlier this year for leasing back five Boeing B787 Dreamliner planes as part of a $600 million deal.
Despite reports of technical snags and delays, the Boeing 787s have become the backbone of Air India’s operations, both international and domestic. This jumbo jet uses 20 per cent less fuel than its counterparts.
Yesterday, AI has taken delivery of its 18th Dreamliner in Charleston, US from Boeing. It will be deployed on the New Delhi-Birmingham (United Kingdowm) route. Further, AI plans to convert the last five Dreamliners into 787-900 from 787-800, as the latter has a longer range with enhanced seating capacity, the airline said.
The 787-8 Dreamliner can carry 242 passengers up to 7,850 nautical miles (14,500 km), while the longer 787-9 can carry 280 passengers 8,300 nautical miles (15,372 km)
An internal committee has been constituted to look into this matter and submit an evaluation report.