Air India scouts for $535m loan to buy three Boeing planes

Air India scouts for $535m loan to buy three Boeing planes

Air India is looking to raise loans worth $535 million to finance acquisition of three Boeing planes, including two aircraft that will be used for ferrying VVIPs, a senior airline official said.

 

However, the disinvestment-bound carrier has reduced the required loan amount by around $20 million in less than three weeks after floating a tender where it had sought loan up to $555 million for buying the three aircraft. The delivery of three B777-300 ER planes is scheduled to be completed in February next year, with two expected to be bought in January.

Issuing a revised tender, the airline has solicited interest from lenders for loan worth up to $535 million, for which two separate term sheets would be inked. At current exchange rates, the loan would be to the tune of around Rs 3,460 crore.

Out of three aircraft, two are to be acquired in January 2018 and those would be for the use of VVIPs, the official said. After making required modifications, the two planes would join the fleet that are generally used to carry President, Vice President and Prime Minister, the official added.
05/11/17 PTI/moneycontrol