Mumbai: Air-India, which recently gave a $9bn order for 68 Boeing aircraft is planning to raise over $1.5 billion to part-fund the acquisition.

Air India is also planning to adopt an innovate borrowing structure including sale and lease back programmes, a popular aircraft financing method for private domestic airlines.

Air India has already floated enquiries calling for bids from banks and financial institutions for the second tranche of aircraft deliveries beyond December 2007 up to March 2009, as pre-delivery payments (PDP) in respect of aircraft and spare engines to be delivered during 2008 and 2009.

The airline will pay 15 per cent of the total amount as advance in the form of PDP and 85 per cent as delivery financing.

Air India has invited financing packages for Exim Bank, US guaranteed facility for $1.06 billion and commercial facility of $181.85 million for 10 aircraft comprising a combination of Boeing family aircraft including B777-200 LRs, B777-300 ERs and B787s."