Air India ties up for loans

Air India has tied up loans worth $155 million (over 1,000 crore) to make pre-delivery payment for three Boeing 777 planes, amid the national carrier making efforts to expand and rejig its fleet with new aircraft. The airline, which is making efforts to turn around its fortunes, is expected to start inducting the three new aircraft in early 2018.

Currently, the carrier has 15 Boeing 777s in its fleet — 12 of them B777-300ERs and the rest B777-200LRs.

A senior official said the carrier will take loan to the tune of $155 million from Deutsche Bank at a ‘very competitive’ interest rate towards making predelivery payment for three Boeing-777 planes.

The three aircraft are to be delivered to the carrier between January-March, 2018.

In December last year, Air India had sought proposals from banks and financial institutions for loan towards pre-delivery payment requirements for three Boeing 777-300 ER aircraft.

Under the terms of the agreement signed with Boeing Company, Air India has to pay 15 per cent of the gross cost of the aircraft as advance payment 24 months prior to delivery.