AI calls for bids to finance aircraft and spare engine deliveries

New Delhi, June 7 (UNI) Air India (AI) has floated enquiries calling for bids from banks and financial institutions for the second tranche of deliveries beyond December 2007 up till March 2009 besides also pre-delivery payments (PDPs) for aircraft and spare engines to be delivered during 2008 and 2009.

The financing packages have been invited for EXIM guaranteed facility for 1.06 billion dollars and commercial facility of 181.85 million dollars for 10 aircraft comprising a combination of Boeing 777-200 LRs, B777-300 ERs and B787.

The PDP facility has been invited for 14 aircraft totalling 467.25 million dollars. AI has also said that it will evaluate any other innovative structured financing package which is not based on US EXIM guaranteed financing or a sovereign guarantee.

A similar enquiry has been floated for financing five B737-800 aircraft and three spare engines to be delivered during January 2008-09 for 200 million dollars (85 per cent component) with a commercial facility of 43.8 million dollars for AI Charters Ltd. The government-owned airline had earlier invited enquiries for the first tranche of financing comprising nearly 1.4 billion dollars for which US EXIM has already issued a firm commitment comprising 17 aircraft (10 for AI and 7 for AI Express). This is in the final stages of tie up.

UNI