National airline Air India Ltd, which has struggled for years to get its finances in order, is putting in place an ambitious plan to repay $3 billion in aircraft loans.
The plan, put together by new chairman and managing director Ashwani Lohani, will include the sale and lease-back of aircraft, additional capital infusion from the government and a gradual repayment of loans through internal accruals, according to two airline executives who spoke on condition of anonymity.
In the first step, Air India will sell nine brand new Boeing 787 Dreamliner planes to aircraft leasing companies and lease them back for a period of up to 12 years, with an option to extend the lease by three more years, at a mutually negotiated price. Air India has fixed a reserve purchase price at $120 million each.
This alone is likely to yield $1 billion in savings.
05/11/15 P.R.Sanjai/Aviation Pros
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The plan, put together by new chairman and managing director Ashwani Lohani, will include the sale and lease-back of aircraft, additional capital infusion from the government and a gradual repayment of loans through internal accruals, according to two airline executives who spoke on condition of anonymity.
In the first step, Air India will sell nine brand new Boeing 787 Dreamliner planes to aircraft leasing companies and lease them back for a period of up to 12 years, with an option to extend the lease by three more years, at a mutually negotiated price. Air India has fixed a reserve purchase price at $120 million each.
This alone is likely to yield $1 billion in savings.
05/11/15 P.R.Sanjai/Aviation Pros
