Friday, June 8, 2007

AI to raise $1.5 bn for aircraft

National carrier Air India, which has placed a $9 billion order to acquire 68 Boeing family aircraft, is planning to raise over $1.5 billion to fund part of its acquisition programme.

The PSU airline is also planning to adopt innovative borrowing structures, including sale and leaseback programmes, which are popular aircraft financing methods for private domestic airlines.

Air India has already floated enquiries calling for bids from banks and financial institutions for the second round of aircraft deliveries beyond December 2007 up till March 2009, and also pre-delivery payments (PDP) for aircraft and spare engines to be delivered during 2008-09.

The airline will have to pay 15 per cent of the total agreed amount as advance in the form of PDP and 85 per cent as delivery financing.

Read more in
The Business Standard article.

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