Air India doesn't have money for 27 Boeing 787 Dreamliners: Vayalar Ravi

Delhi/Mumbai: The ministry of civil aviation is having second thoughts on plans by Air India to take delivery of 27 Boeing 787 aircraft, better known as the Dreamliner, as it would aggravate the debt burden of the financially stressed national carrier.
"Air India does not have the money to pay for the 27 Boeing planes. Air India will not increase its debt burden right now," said civil aviation minister Vayalar Ravi Tuesday at a public event in Delhi. Air India had ordered 27 Dreamliners in 2005 from US aerospace giant
Boeing was part of a massive fleet programme in which the state-owned airline decided to acquire 68 aircraft worth Rs 30,000 crore. This plan was questioned by the Comptroller and Auditor General ( CAG) in a report submitted last Thursday on the ground that the orders were based on unrealistic assumptions about growth.
Air India, which faces the daunting task of repaying debt of Rs 43,000 crore, may have to bear an additional debt burden of Rs 17,000 crore to finance the Dreamliners, the newest aircraft from Boeing.
14/09/11 Economic Times

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Categories: Air India Sep 2011