Air India May Sell Dreamliner Plane on Delivery, Lease Back

Mumbai: Air India Ltd. plans to sell and lease back the Dreamliner planes it is expected to soon start taking delivery from Boeing Co., a senior executive said Monday, as the financially troubled carrier looks to raise cash to fund its operations.
Air India is among the first to get delivery of the long-range Dreamliner that Boeing says is its most fuel-efficient airliner. The national carrier had ordered 27 Dreamliners as part of a total orders for 111 planes, split between Boeing and Airbus.
Boeing's Dreamliner project has been delayed by more than three years due to technical snags in developing the aircraft.
"We will look at other similar [sale and leaseback] transactions with other planes as well, but priority for us is the Dreamliner," the executive said. Dreamliners are in demand now and will likely fetch a higher price than other planes, he added.
Air India's rivals Jet Airways (India) Ltd. and Kingfisher Airlines Ltd., both hit by losses, also plan to raise money in the next few months via sale and leaseback of planes.
28/11/11 Anirban Chowdhury/Wall Street Journal

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Categories: Air India Nov 2011