Financial Daily from THE HINDU group of publications
Tuesday, Jan 31, 2006
Financial Daily from THE HINDU group of publications Tuesday, Jan 31, 2006 |
|
|
|
|
|
|
|
Logistics
-
Airlines Money & Banking - Alliances & Joint Ventures AI signs $429-m interim finance pact for aircraft purchase Ashwini Phadnis
New Delhi , Jan 30 AIR India (AI) on Monday signed a $429-million (Rs 1,888.46 crore) interim financing agreement with a consortium of banks for funding the purchase of new aircraft for itself and its 100 per cent subsidiary Air India Express. "The funds raised today will be used for pre-delivery payment commitments for 22 aircraft that AI and AI Express will be getting till May 2008. These include 12 aircraft for AI including three Boeing 777 Extended Range and Long Range aircraft each that the airline will take delivery of and 10 Boeing 737-800 that AI Express will be acquiring," a senior AI official said. The agreement - which includes $306 million (Rs 1,347 crore) for AI and $123 million (Rs 541.45 crore) for AI Express - has been reached at 150 basis points above Libor and at a six-month tenor. While IDBI was the lead banker, the other member bankers include Bank of India, Canara Bank, Bank of Baroda, UCO Bank and Citibank. The airline plans to float bids for financing the entire project cost after the financial commitment of Exim Bank is in place, officials said. In April last year, the airline board had cleared a proposal to purchase 50 Boeing aircraft including 27 Boeing 787, 8 B 777-200 Long Range and 15 B777-300 Extended Range aircraft. Besides, another 18 Boeing 737-800 aircraft are being purchased for Air India Express. The airline plans to acquire the 68 Boeing aircraft at an estimated cost of Rs 35,000 crore.
More Stories on : Airlines | Alliances & Joint Ventures
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|