Air India seeks funding support

Air India has floated enquiries calling for bids from Banks

and Financial Institutions for the second tranche of deliveries beyond Dec-07

up until Mar-09 as also pre-delivery payments in respect of aircraft and spare

engines to be delivered during 2008 and 2009.

The financing packages have been invited for EXIM guaranteed facility for USD1.06 billion and commercial facility of USD181.85 million for 10 aircraft comprising a combination of B777-200LRs, B777-300ERs and B787s. The PDP facility has been invited for 14 aircraft amounting to USD467.25 million.

Air India has also stated that it would 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 5 B737-800 aircraft and 3 spare engines to be delivered during the period Jan-08 and Jan-09 for an amount of USD200 million (85% component) with a commercial facility of USD43.8 million for Air India Charters Ltd. Air India had earlier invited enquiries for the first tranche of financing comprising nearly USD 1.4 billion for which US EXIM has already issued a firm commitment comprising 17 aircraft (10 for Air India and 7 for Air India Express).