AI seeks $555 mn bridge loan for buying 3 Boeing planes

TIL Desk/Business/New Delhi/ Air India is planning to raise USD 555 million by way of bridge loan for the purchase of three Boeing aircraft, according to a tender document. The disinvestment-bound national carrier would be taking delivery of three B777-300 ER planes early next year.

Now, the airline has sought offers “banks/ financial institutions to arrange a bridge financing up to USD 555 million for financing the acquisition of the three B777-300 ER aircraft to be drawn equally at the time of taking delivery of the aircraft,” the document said.

At current exchange rate, the amount would be around Rs 3,594 crore. Two of the aircraft are to be delivered in January and the remaining one in February. As per the purchase agreement with Boeing, Air India is to buy 15 B777-300 ER aircraft and it has already taken deliver of 12 such planes.

In 2006, Air India placed orders with Boeing for 68 aircraft — 27 Dreamliners, 15 B777-300 ERs, eight B777-200 LRs and 18 B737-800s. Of these, the state-run carrier has already taken the delivery of 65 planes. At present, the flagship airline has a fleet of 115 aircraft. The B777-300 ER aircraft owned by Air India has 342 seats for passengers.