The Hindu Business Line : AI calls bids from banks, FIs for funding plane purchase

Mumbai June 8 Air India has floated enquiries calling for bids from banks and financial institutions for the second tranche of aircraft deliveries beyond December 2007 till March 2009, as also pre-delivery payments in respect of aircraft and spare engines.

The financial packages have been invited for EXIM guaranteed facility for $1.06 billion and commercial facility of $181.25 million for 10 aircraft, comprising a combination of 777-200 LRs, 777-300 ERs and 787.

Air India said it would evaluate any other innovatively structured financing package that is not based on US EXIM- guaranteed financing or a sovereign guarantee.

A similar enquiry has been floated for financing five 737-800 aircraft and three spare engines to be delivered between January 2008 and January 2009 for $200 million with a commercial facility of $43.8 million for Air India Charters Ltd.

Air India had earlier invited enquiries for the first tranche of financing comprising nearly $1.4 billion for which US EXIM has already issued a firm commitment comprising 17 aircraft (10 for Air India and 7 for Air India Express). This is in the final stages of the tie-up.

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