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HindustanTimes Tue,21 Oct 2014

Air India puts five B777s on block, eyes $450 mn from sale

PTI  Mumbai, November 26, 2012
First Published: 19:52 IST(26/11/2012) | Last Updated: 19:59 IST(26/11/2012)

After failing to find any lessor forits five Boeing 777s, the debt-laden Air India is now planning an outright sale of these aircraft to raise up to $450 million (about Rs. 2,500 crore), airline sources said.

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The state-run airline will soon appoint a consultant to help it find a suitable buyer besides taking the assistance from Boeing on the issue, they said. The move is to trim over Rs. 68,000-crore debt, they added.

"These are surplus aircraft after the induction of the latest Dreamliners in our fleet which we have decided to dispose of," Air India sources told PTI on Monday.

Earlier, the carrier had sought to 'sale and lease back' the fuel-guzzling five Boeing 777-200 LR planes, which are of 2007 and 2009 make.

However, despite repeated attempts, Air India did not find any taker for them, eventually forcing to put them on the block.

"Currently, the price for these aircraft hovers around $85-90 million per unit," they said, adding the proceeds from the outright sales would be utilised to phase out loan taken for these aircraft. These planes were part-funded by the US Exim Bank.

The airline will soon appoint a consultant to facilitate the sales. In addition "we have also requested Boeing to remark these planes," sources added.

In 2005, Air India had placed orders for 68 aircraft with the US aircraft-maker Boeing consisting of 18 B737-800s, 27 Dreamliners and another 23 B777s, apart from 43 from the European plane-maker Airbus.

Of the 23 777s, 15 are B777-300 ERs and eight are B777-200-LRs.

Air India has already taken delivery of 18 737-800s and eight B777-200 LRs, besides 12 B-777-300 ERs.


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