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AI seeks Rs5,000 cr loan to buy 7 aircrafts

AI seeks Rs5,000 cr loan to buy 7 aircrafts
PTI
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First Published: Sun, Feb 22 2009. 12 02 PM IST
Updated: Sun, Feb 22 2009. 12 02 PM IST
Mumbai: National air-carrier Air India has floated tenders for long-term loans to raise around Rs5,000-crore from domestic and global banking or financial institutions to fund acquisition of seven aircraft.
For the US Exim guaranteed facility, the term would be 12 years while for commercial, it would be five years, the National Aviation Company of India Limited (NACIL) tender document said.
NACIL is the holding company formed after the merger of Air India and Indian (erstwhile Indian Airlines) into a single entity.
The funds may be raised either in national or foreign currency or in a mix of both, the document said. Air India plans to acquire these aircraft over the next eight months, with the first delivery expected around June this year.
Of the seven aircraft proposed to be acquired, three would be Boeing 777-200 (Long Range) and four Boeing 777-300 (Extended Range).
The national air-carrier plans to acquire 50 new aircraft over the next few years.
Air India is understood to have posted losses of around Rs2,500-crore in FY 08 and is presently seeking additional equity infusion from the Government to help it tide over the financial crisis.
A proposal providing Air India an additional equity of Rs1,250-crore and long-term soft-loans worth Rs2,750-crore is currently pending with the Government for its approval.
The air-carrier presently has a paid-up capital of Rs145-crore and an authorised capital of Rs1,500-crore.
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First Published: Sun, Feb 22 2009. 12 02 PM IST
More Topics: Air India | Loan | Bank | Aircraft | Aviation |