The Hindu Business Line : Air India floats bids for second tranche of buys

New Delhi June 7 Air India has invited bids from banks and financial institutions for its second tranche of aircraft and spare engine purchases for beyond December 2007 up to March 2009.

The inquiries also cover pre-delivery payments in respect of aircraft and spare engines to be delivered in 2008-09.

In a statement on Thursday, Air India said that the financing packages have been invited for Exim-guaranteed facility for $1.06 billion and commercial facility of $181.85 million for 10 aircraft comprising a combination of 777-200 LRs, 777-300 ERs and 787s.

The pre-delivery payment facility has been called for 14 aircraft amounting to $467.25 million.

The airline also said that it would evaluate other innovative structured financing packages that were not based on US Exim-guaranteed financing or a sovereign guarantee.

Besides, a similar inquiry has been floated for financing five 737-800 aircraft and three spare engines to be delivered in 2008-09 for $200 million, with a commercial facility of $43.8 million for its subsidiary, Air India Charters Ltd.

Air India had earlier invited enquiries for the first tranche of financing comprising $1.4 billion, for which US Exim had already issued a commitment for 17 aircraft, including 10 for Air India and seven for Air India Express, which has been in the final stages of tie-up.