Air India looks to raise funds through lease-back of aircraft

Air India looks to raise funds through lease-back of aircraft

PTI

Mumbai: Hit by the global financial meltdown coupled with mounting losses, national air-carrier, Air India, plans to raise $165 million through sale and lease-back some of its aircraft.

National Aviation Company of India Limited (NACIL), which is the holding compnay of Air India, has floated global tenders for sale and lease-back of six of its aircraft for a period of seven years.

The aircraft are one Boeing 747-400 and five Airbus A320-200.

The reserve price is set at $65 million for the B747-400 aircraft and $20 million per aircraft for the A320-200 aircraft, the state-run airline said in its bid document.

Air India had last year posted losses to the tune of Rs2,100-crore and this year its losses are likely to be in the range of Rs4,000-crore.

Amidst these losses, the airlines has sought a bailout package from the Government in the form of both soft loans and equity infusion.

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