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Air India to sell 7 Dreamliners to raise USD 840 million

The funds raised will be used to pay off the bridge loans taken against these planes. Sources said "the remaining (proceeds) will be used for operational requirements of the company".

twitter-logoPTI | December 23, 2013 | Updated 12:12 IST
Air India to sell 7 Dreamliners to raise $840 mn

Air India, the state-run carrier, plans to raise up to $840 million from the sale of its seven Boeing 787-8 Dreamliner planes, which it will then lease back, to pay off the bridge loans taken against these aircraft.

Sale-leaseback is an arrangement in which an owner sells an asset to a leasing firm and, at the same time, leases it back (as a lessee) on a long-term basis to retain exclusive possession and use.

The carrier has already taken the delivery of 11 Dreamliners and three more are expected to join the fleet by March of next year.

"We have put seven Boeing 787-8 Dreamliner planes for sale and leaseback to mop up funds," airline sources said. "We expect to raise funds to the tune of $770-840 million as the airline is likely to get around $110-120 million per plane."

The funds raised will be used to pay off the bridge loans taken against these planes, they said, adding that, "the remaining (proceeds) will be used for operational requirements of the company".

Air India had placed orders for 68 aircraft with Boeing in January 2006, including for 27 Dreamliners, 41 B-777s and B-737-800s.

Apart from this, the national carrier had also booked 43 planes from Airbus, which have already been inducted into its fleet.

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