AI in cash chase for plane buy

New Delhi: Air India has invited bids for delivery financing of Boeing 787 Dreamliners and hopes to secure a loan of Rs 3,745 crore from the US Exim Bank.
The cash-strapped airline has placed an order for 27 Dreamliners and expects to receive seven planes by March.
“We have approached the US Exim Bank for its approval. The loan will have a government guarantee. We hope to secure an interest rate of 50-70 basis points above Libor. It will amount to a little over 1 per cent,” a senior Air India executive said.
The London inter-bank offer rate (Libor) is a key rate-setting benchmark for international loans. India enjoys a high rating and can borrow at a few basis points above Libor.
The loan will be for a tenure of 12 or more years. Air India will deploy the planes on the European and Asian routes.
The Dreamliner, which can fly up to 15,000km with 250 passengers, is expected to be deployed on high density and long range routes such as the India-Australia and India-US sectors.
23/07/11 The Telegraph

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Categories: Air India Jul 2011