Air India to raise fresh loan of USD832m for B787 purchases: reports

Air India will reportedly raise a fresh loan of INR3.7 billion (USD832 million) to fund the purchase of B787 equipment, despite the airline's challenges meeting its existing debt obligations (Business Standard, 20-Jul-2011). The first B787 is scheduled for delivery in Oct-2011, with Air India to be the second B787 customer after ANA. Air India has invited bids for the delivery financing and hopes to secure US Exim Bank guarantee for the funding. The loan will cover 85% of the aircraft cost and will be for tenure of 12 or more years. The airline is also considering sale-and-leaseback options.