The government may be looking at
disinvesting Air India, but the flag carrier is going ahead with its fleet
expansion plans and looking for interim financing worth $740 million (around Rs
4,720 crore) for buying six 787 Dreamliners.
The airline has
invited offers from from banks and financial institutions to arrange bridge
financing for the amount for 15 months to buy these Boeing planes. This could
mean that a single plane could cost $123.3 million.
Earlier in March,
Air India had sought $470 million or around Rs 3,100 crore from banks and
financial institutions to buy four Dreamliners from Boeing. Of the six, three
aircraft have been delivered, while the rest would be delivered by October. No
government guarantee was given for the three aircraft which were delivered
already.
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.
Loan requirement
“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, issued last Friday, said.
“Air India would
prefer to have a bullet repayment for this facility or a suitable moratorium
period for payment of principal amount under this facility. The bidder with the
lower all in costs would be selected,” it said.
As part of fleet
expansion plan, in 2006, Air India had placed orders with Boeing for 68
aircraft -- 27 Dreamliners, 15 777-300ERs, eight 777-200LRs and 18 737-800s.
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