New Delhi: National carrier Air India is seeking a bridge loan of up to $225 million (over Rs 1,500 crore) for part funding of induction of two Boeing 787 Dreamliner aircraft.
Air India, which is scheduled to take delivery of two more 787 aircraft between November and December, has invited offers from banks/financial institutions to arrange the bridge financing for a period of up to 15 months.
A bridge loan is typically used to meet payment commitments until a long-term financing is arranged.
The government-run airline at present has 21 Boeing 787-800s in its fleet. In January 2006, it had placed orders for 68 Boeing aircraft, including 27 Dreamliners and 41 B-777s and B-737-800s. It has not taken delivery of these planes since June, 2015.
The airline, according to the bid document, is offering the aircraft as security and will repay the loan after it concludes a sale and lease-back arrangement, it said, adding that there will be no government guarantee for the loan.
“The delivery of Dreamliners start in November this year… It (delivery) is on schedule. First plane in November and the next in December. Four more in 2017,” Boeing senior vice president sales (Asia Pacific and India) Dinesh Keskar had said last week.
Air India has already tied up sale and lease-back for its 21 B787-800 planes, which have been delivered to the airline so far, according to the bid document.
Under a lease-back arrangement, the seller of an asset leases it back from the purchaser for a long-term and continues to use it without actually owning it.