The Hindu Business Line : Air India gets $1.2 b Exim loan for 17 aircraft purchase

New Delhi, Oct. 9 Air India is set to get $1.2 billion US Exim guaranteed loan from the US Exim for purchase of 17 Boeing aircraft by the airline. These 17 aircraft would be delivered to Air India by December this year.

Official sources told Business Line that ABN AMRO has been mandated for the US Exim guaranteed loan while ICICI and State Bank of India will handle the commercial portion.

The 17 aircraft form a part of the 68 aircraft deal that the airline had firmed up with Boeing in 2005.

“Exim has issued a final commitment with respect to 17 aircraft and a preliminary commitment for 51 aircraft covering the 68 aircraft valued at a list price of $11 billion,” an airline official said.

Official sources also said that the agreement is to be signed late Tuesday night at the Exim Headquarters in Washington D.C. by the Chairman and Managing Director, Air India, Mr V. Thulasidas and Mr James Lambright, the Chairman and President, US Exim.

The airline has already received sovereign guarantee from the Indian Government for the project which should facilitate Air India to negotiate competitive rates for required loans.

Acquisition plan

The airlines acquisition plan includes inducting 18 Boeing 737-800, 27 Boeing 787, 8 B 777-200 Long Range and 15 B777-300 Extended Range aircraft. The loan is being finalised after the airline has received a part of the order including at least three Boeing 777-200 Long Range aircraft and some Boeing 737-800 aircraft.