Air India

Air India (AI) has offered to lease eight Boeing 777-200 planes for 8-10 years to raise money as a part of a plan to cut its debt by March.

India’s national carrier has floated a bid to dry-lease the Boeing 777-200 (Long Range) aircraft, which include four aircraft manufactured in 2007, one in 2008 and three in 2009.

Under the plan, five Boeing 777-200s will be sold and taken back on lease for 12 years, while the other Boeing 747-400 aircraft will be sold.

The sale of the five 777-200s will fetch Air India $500m and the 747s are expected to generate $30m each.

An unnamed Air India official told livemint.com: "Besides selling two Boeing 747s and five Boeing 777s, we have floated tender for sale-and-leaseback of seven Boeing 787s. We have already got four proposals, but we are extending the tender to two weeks more
for more and better proposals."

The lease agreement is being signed ahead of the planned induction of B787s, with the first aircraft scheduled to be introduced into later this month; by June Air India plans to induct another six planes.

Air India plans to introduce the composite-material Dreamliners on long-haul, non-stop routes such as those to the US and Canada, replacing the B-777 planes.

The airline is also considering launching direct flights to Australia with these aircraft.

According to reports Air India has a total debt of Rs437.7bn ($7.9bn) including loans and dues it owes to vendors such as oil companies and airport operators.

Image Caption: The sale of the five 777-200s will fetch Air India about $500m and the 747s are expected to generate $30m each. Image Courtest:caribb