Air India Board Approves Major Aircraft Purchase and Leasing Plan

Air India's Board of Directors has greenlit the purchase of 21 Airbus 320 family aircraft, backed by a loan refinancing agreement with ICICI Bank for Rs 5,500-crore, as well as other financing arrangements for Boeing 777-300ERs and spare engines. This move is part of the airline's strategy to upgrade its fleet and enhance its operational efficiency. Additionally, the Board approved plans to dispose of four A 310 passenger aircraft and take on the dry lease of 10 Airbus A 320 aircraft to replace its ageing fleet.

Key Takeaways:

• The Air India Board approved the purchase of 21 Airbus 320 family aircraft, with ICICI Bank refinancing the loan for Rs 5,500-crore.
• The Board also approved delivery financing of three Boeing 777-300ERs and one GE-90 spare engine worth USD 475-million with US Exim support.
• Citibank will provide 85% and Standard Chartered will provide 15% of the refinancing loan.
• Air India will dispose of four A 310 passenger aircraft along with their simulator.
• The airline also secured approval for dry leasing 10 Airbus A 320 and 2 Airbus A 330 aircraft to enhance its fleet.
• Air India Express will now have a fleet of 21 aircraft, including 17 owned aircraft.
• The proposal to acquire 30-acres of land near Nagpur SEZ area for a MRO facility was also approved.

Statistics:

• 21 Airbus 320 family aircraft will be purchased by Air India.
• Rs 5,500-crore loan refinancing agreement with ICICI Bank.
• USD 475-million financing for three Boeing 777-300ERs and one GE-90 spare engine.
• 85% of refinancing loan will be provided by Citibank, 15% by Standard Chartered.
• 10 Airbus A 320 aircraft will be dry leased by Air India.
• 2 Airbus A 330 aircraft will be dry leased by Air India.

Sources:

• PTI, Mumbai, January 19, 2011.