Air India puts 9 Dreamliners on sale

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New Delhi, Oct 9: State-owned carrier Air India has put on sale nine of its 21 Dreamliners (B787-800) to raise over Rs 7,000 crore to fund acquisition of new aircraft and also for repayment of the bridge loan availed earlier for purchasing these Boeing 787-800s.

These nine planes were inducted in the national carrier's fleet between March 2014 and June this year. Air India would also lease back these the nine B787-800 under an operating lease for a period of up to 12 years with a three-years extension option, the airline said in an Invitation of Offers document.

Air India puts 9 Dreamliners on sale

Under a Sale and Lease Back (SLB) arrangement, the seller of an asset leases it back from the purchaser for a long-term period and continues to use it without actually owning it.

The airline has already sold and leased back the remaining 12 Dreamliners under the SLB arrangement. Air India intends to finance its aircraft through direct purchase/operating sale and lease back, proposed to use the proceeds of the facility for purchase of aircraft and repayment of bridge loan taken for acquisition of nine 787-800 planes, the document said.

The airline has fixed a reserve price of not less than USD 120 million for the planes acquired in 2015 and USD 120 million for the aircraft inducted in the fleet during 2014, it said.

Under the SLB/financial lease, Air India would sell these planes to the lessor and immediately lease them back under an operating lease for a period of up to 12 years with an option to extend by three more years at a mutually negotiated price, the document said.

PTI 

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