AI to raise Rs 4,434 crore to finance fleet acquisition

New Delhi: Air India will have to raise about Rs 4,435 crore through its internal resources and borrowings in 2010-11 to finance its fleet acquisition, even as the government promised to infuse additional equity worth Rs 1,200 crore during the period.
The ailing national carrier is expected to induct four Boeing 777-300 (Extended Range) and one Airbus A-321 during this financial year. With the arrival of the A-321, Air India would complete its order of 42 aircraft from the European manufacturer Airbus, official sources said.
Out of a total annual plan of Rs 5,634.80 crore, the airline would get equity worth Rs 1,200 crore with the remaining amount to be mobilised through internal and extra- budgetary resources (IEBR). Government had infused equity worth Rs 800 crore in the last fiscal.
Air India is projected to spend Rs 4,197.80 crore on the aircraft acquisition programme, including advance and delivery payments to the manufacturers, creating supporting infrastructure for the new aircraft and interest, they said. It is also likely to incur other capital expenditure on items like building projects, computerisation and booking offices and has earmarked Rs 237 crore for the purpose.
25/04/10 PTI/Economic Times

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Categories: NACIL Apr 2010