AI eyes Rs 380 cr from leaseback, sale of 6 aircraft

RELATED NEWS Air India, Indian propose to revalue assets Air India to name new fleet after States AI team to finalise $6-b US Exim loan Air India, SATS to set up cargo handling facility Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

New Delhi March 12

In a move that would help Air India unlock the value of its assets, the airline plans to adopt the sale and leaseback method for six Airbus A-310 aircraft in its fleet.

The airline has invited bids under the reverse auction method for the sale and leaseback arrangement from prospective lessors or bankers for the aircraft.

AI has already received a bid from a banker for $78 million (about Rs 380 crore) for the sale and leaseback arrangement for the six aircraft. The bank has quoted a monthly lease rental fee of $247,000 that AI would have to pay for each of the six aircraft.

"It is a win-win situation for us. Not only do we immediately receive almost Rs 380 crore but the aircraft also remains in the fleet," official sources told Business Line. The airline plans to complete the entire transaction before March 31 and the funds are likely to be used not only to replenish working capital requirements, but also meet loan repayments that have to be met for acquiring 68 new Boeing aircraft.

The airline plans to sell the aircraft to the lessors/banker and immediately lease it back for five years.

contd on page 2...