Air India looking to raise US$830m to purchase Boeing 787

New Delhi: Air India is looking to raise some $830 million to purchase Boeing's Dreamliner 787.
The beleaguered carrier is hoping the fleet will help shore up revenues and perhaps even reverse its fortune.
Air India will receive four Boeing 787s by the end of this year while another 27 Dreamliners will be delivered over the next few years.
The carrier hopes the new fleet will attract more passengers on its long haul flights and reverse its falling market share.
Subash Goyal, Chairman, ASSOCHAM Committee on Aviation, said: "787 planes will definitely change the image of Air India. Aviation is such a business that you have to be ahead of the race. When 747s came, Air India was the first airline in Asia to have 747s. Now other countries have taken the lead. So we want Air India to come back to its glory."
However, Air India is struggling with its finances. It is looking to raise $832 million in loans to cover at least 85 per cent of the purchase cost of the 787s.
It is also looking at the sale and lease back route to keep its costs under check.
02/08/11 Damanjeet Kohli /Channel NewsAsia

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Categories: Air India Aug 2011, Foreign Aug 2011