AI seeks Rs 5,000-cr loans from banks, FIs to buy 7 aircraft

National air-carrier Air India has floated tenders for long-term loans to raise around Rs 5,000-cr from domestic and global banking or financial institutions to fund acquisition of seven aircraft.

National air-carrier Air India has floated tenders for long-term loans to raise around Rs 5,000-crore from domestic and global banking or financial institutions to fund acquisition of seven aircraft.

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For the US Exim guaranteed facility, the term would be 12 years while for commercial, it would be five years, the National Aviation Company of India Limited (NACIL) tender document said.

NACIL is the holding company formed after the merger of Air India and Indian (erstwhile Indian Airlines) into a single entity.

The funds may be raised either in national or foreign currency or in a mix of both, the document said.

Air India plans to acquire these aircraft over the next eight months, with the first delivery expected around June this year.

Of the seven aircraft proposed to be acquired, three would be Boeing 777-200 (Long Range) and four Boeing 777-300 (Extended Range).