Financial Daily from THE HINDU group of publications
Saturday, Feb 04, 2006
Financial Daily from THE HINDU group of publications Saturday, Feb 04, 2006 |
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Airlines IA seeks $145-m loan for funding aircraft purchase Our Bureau
New Delhi, Feb. 3 INDIAN Airlines has sought a $145-million loan facility for financing Pre-Delivery Advance Payments (PDPs) for purchase of 43 Airbus aircraft. The state-owned airline has approached scheduled Indian and foreign banks and financial institutions for raising the funds. The funds raised would not only be used for making PDPs to the aircraft manufacturer but also to the engine manufacturer for spare engines and other suppliers for simulator among others. The airline plans to purchase 19 Airbus A-319, 4 Airbus A-320 and 20 Airbus A-321aircraft. The new aircraft are scheduled to be delivered between October this year and March 2010. A final decision on the short-listed lender for the loan funds will be taken after February 23, the last date for interested parties to make an offer to the airline. In December last year, the airline signed a Letter of Intent (LoI) spelling out its intention to do business with the aircraft manufacturer and paved the way for a purchase contract to be firmed up. The Government had given its nod for the aircraft purchase to go through before the LoI was signed. The airline is now expected to sign a formal purchase agreement with the aircraft manufacturer shortly. Earlier this week, AI signed a $429-million (Rs 1,888.46 crore) interim financing agreement with a consortium of banks for funding the purchase of 22 new aircraft for itself and its 100 per cent subsidiary Air India Express.
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