Air India lines up finance/lease options for Dreamliners

Mumbai: Market reports suggest that Deutsche Bank AG may have emerged as the front-runner to offer a $850 million (Rs4,200 crore) loan to Air India Ltd for the purchase of 27 Boeing 787 planes, or Dreamliners.

According to reports, the badly struggling state-owned carrier is working on a two-pronged strategy by also lining up international leasing companies willing to buy the Dreamliners and lease them back to it.

With the carrier staggering under a mountain of debt the government is rethinking the original purchase order for 787s as going through with the deal would only add to the pile of debt. On the flip side these new fuel-efficient aircraft are essential to secure the operational turnaround of the carrier.

A group of ministers (GoM), entrusted with the task of looking at the airlines turnaround plans, is due to meet this month and take a final call on the issue.

Airline officials are quoted as saying that the carrier has shortlisted companies for both financing and lease-back options and is waiting for the outcome of the GoM meet.

Airline executives also confirmed that Boeing had given a new delivery schedule under which the first Dreamliner would join the carrier in December and the second one in March.

The badly struggling flag carrier has accumulated a debt of Rs42,570 crore and an accumulated loss of Rs22,000 crore as of 31 March 2011.