Air India's woes increase, even no takers for its lease plans

Mumbai: There seem to be no takers for leasing Boeing-777s from Air India, which plans to wet-lease six of them for up to two years owing to a demand-supply mismatch.
"Inquiries are coming but the rentals they are quoting are much less than our expectations," sources in the airline told PTI here today. This has forced the airline to extend the date for submitting bids for the third time last week to January 29.
The ailing national carrier had invited requests for quote (RFQs) to lease out these wide-body Boeing 777s last November in its bid to mop up some additional funds amidst huge financial losses. The flag carrier is awaiting a government bail out now.
Of the six aircraft, which are 2007 manufactured, three are Boeing 777-200s (long range, LR) and remaining ones are Boeing 777-300s (extended range, ER).
"The airlines the world over have reduced capacity in the wake of huge losses and this has rendered a lot of aircraft becoming surplus. Consequently, the supply is much more than the demand, leading to a sharp decline in lease rentals globally," the sources pointed out.
"Currently, the lease rentals for a new Boeing 777-300 ER or Boeing 777-200 LR aircraft is around USD1.2 million per month in the global market," aircraft leasing agency Flying Machine managing director Sandeep Malkar said.
10/01/10 PTI/Economic Times

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Categories: NACIL Jan 2010