Air India to raise USD1 billion for aircraft acquisition
Air India announced plans to raise USD1 billion through internal resources and borrowing in FY2010/11 to finance fleet acquisition, with the carrier expecting to take delivery of four B777-300ERs and one A321 (Press Trust of India, 26-Apr-2010). The A321 would complete the carrier’s order for 42 Airbus aircraft. Of the total, USD948 million would be used for fleet acquisition, while the remaining USD54 million would be used for capital expenditure incurred on building projects and computerisation. Air India also expects to receive a USD271 million equity infusion from the Indian Government in FY2010/11. Meanwhile, Air India reportedly deferred the delivery of three B777s from 2011 to beyond 2012 (Live Mint, 25-Apr-2010). The carrier is also reportedly in talks with Boeing to convert the USD450 million order for three aircraft into an order for one B737.