Published on Mon, Jan 29, 2007 at 08:14 | Source : Moneycontrol.com
Updated at Mon, Jan 29, 2007 at 08:50
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AI team to finalise $6-b US Exim loan
A team from Air India will be going to Washington soon to formalise documentation for availing itself of a $6-billion loan from the US Exim Bank for purchase of Boeing aircraft.
A team from Air India will be going to Washington soon to formalise documentation for availing itself of a $6-billion loan from the US Exim Bank for purchase of Boeing aircraft.
"The team will work on preparing all operative documents for Air India and Air India Express including the master lease agreement that would see the aircraft being leased to a Special Purpose Vehicle from which they would join the respective airlines," sources told Business Line. The loan constitutes about 85% of the cost of the aircraft with the airline tying up the rest of finances from commercial banks.
Official sources added that the formalisation of the documentation would help the airline avail itself of the first tranche of $1.4 billion loan for acquiring 17 aircraft including 10 Boeing 737-800 and seven Boeing 777.
"The team will work on preparing all operative documents for Air India and Air India Express including the master lease agreement that would see the aircraft being leased to a Special Purpose Vehicle from which they would join the respective airlines," sources told Business Line. The loan constitutes about 85% of the cost of the aircraft with the airline tying up the rest of finances from commercial banks. 
