Air India seeks loans for modification of VVIP’s Planes

National News

Business Mantra News

  • Air India is seeking loan worth over Rs.1100 Crores for modification of two Boeing aircraft 777-300 ER which are expected to be delivered in January 2018 for ferrying VVIP’s.
  • The cost for modification in its planes with Interior Configuration is estimated to be $180 million i.e. Rs. 1,160 crore as per current exchange rate.
  • These Boeing planes will be used to ferry the President, Vice President and the Prime Minister.
  • In a tender document, the national carrier said that it would like to avail a bridge loan of up to $180 million to finance the cost of modification.
  • Airline averred that no commitment fee would be paid to the lender for the USD 180 Million loan.
  • “The Government of India indicated that they would issue its guarantee for the financing cost of modification of the two B777-330 ER aircraft for a period of 12 months or less.” the document said.
  • These planes will undergo reconfiguration.
  • The proposed loan amount will be availed during the period from January to April 2018.
  • Last month, Air India sought loan to the tune of 535 million to finance the acquisition of three Boeing planes. As Air India has also burdened with a debt of Rs.50, 000 Crores, these loans would further increase the debt.
  • Meanwhile, Government of India is in the process of finalizing the modalities for the strategic disinvestment of deb-ridden Air India as part of efforts to revive the Aircraft Carrier.

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