AI seeks loan to buy VVIP jets

Seeks $535m loan 2 Boeing aircrafts to be used for ferrying VVIPs

Issuing a revised tender, the airline has solicited interest from lenders for loan worth up to $535m, for which two separate term sheets would be inked

New Delhi, Nov. 5: Air India is looking to raise loans worth $535 million to finance acquisition of three Boeing planes, including two aircraft that will be used for ferrying VVIPs, a senior airline official said.

Late on Sunday evening, an Air India spokesperson confirmed the PTI report that the two aircraft will be used for VVIP travel.

However, the disinvestment-bound carrier has reduced the required loan amount by around $20 million in less than three weeks after floating a tender where it had sought loan up to $555 million for buying the three aircraft.

The delivery of three B777-300 ER planes is scheduled to be completed in February next year, with two expected to be bought in January.

Issuing a revised tender, the airline has solicited interest from lenders for loan worth up to $535 million, for which two separate term sheets would be inked.

At current exchange rates, the loan would be to the tune of around `3,460 crore.

Out of three aircraft, two are to be acquired in January 2018 and those would be for the use of VVIPs, the official said.

After making required modifications, the two planes would join the fleet that are generally used to carry the President, vicepresident and PM, the official added. As per the purchase agreement with Boeing, Air India is to buy 15 B777-300 ER aircraft and it has already taken delivery of 12 such planes.

The spokesperson said that Air India had placed an order with Boeing for 68 aircraft in 2005.

“These B777-300 ER airplanes are the last of the three aircraft to be delivered. They are being delivered on January 18 and February 18 by Boeing.