Air India Ltd. is seeking as much as USD 500 million of loans to help pay for four Boeing 787 planes. The airline will repay the bridge loan by selling and leasing back the aircraft, according to a tender document on its website. Banks have until August 24, 2012 to submit bids, it said.
Two Dreamliners, funded by a USD 195 million loan from Standard Chartered Plc, are scheduled to arrive this month after the government approved a compensation offer from Boeing for
delivery delays. The airline will use the fuel-efficient B787s to start Sydney and Melbourne flights as it seeks to attract more passengers and cut expenses in a bid to end five years of losses. Air India expects to have received a total of six 787s by the end of the year, according to the tender. The bridge loan of six to 12 months won’t be covered by a government guarantee, it said. The carrier plans to sell and lease back all of the 27 Dreamliners it has ordered as part of a financial turnaround plan. It also intends to borrow USD 600 million overseas to repay costlier working capital loans raised at home.
Click here to see the original article>delivery delays. The airline will use the fuel-efficient B787s to start Sydney and Melbourne flights as it seeks to attract more passengers and cut expenses in a bid to end five years of losses. Air India expects to have received a total of six 787s by the end of the year, according to the tender. The bridge loan of six to 12 months won’t be covered by a government guarantee, it said. The carrier plans to sell and lease back all of the 27 Dreamliners it has ordered as part of a financial turnaround plan. It also intends to borrow USD 600 million overseas to repay costlier working capital loans raised at home.