Air India gets $548.6 million loan from US-based Ex-Im Bank for purchase of Boeing planes

Washington: Indian flag carrier, Air India, has received loan guarantees to the tune of $548.6 million from the Export-Import Bank (Ex-Im Bank) of the US to support its purchase of Boeing aircraft.

Air India chairman and managing director Raghu Menon and Ex-Im Bank chairman James H Lambright signed the deal on Friday at a ceremony at the bank headquarters at Washington.

Air India's holding company is known as the National Aviation Company of India Limited (NACIL).

The airline's chairman and managing director said that Ex-im Bank's contribution in partnering with Air India in our project to acquire 68 state-of-the-art aircraft from The Boeing Company was greatly valued. He said that the induction of these modern aircraft into Air India's fleet will be a major in making Air India a truly global airline.

The inclusion of Boeing aircraft will result in a significant expansion of Air India's international network.

Ex-Im Bank chairman James Lambright said that the fast-growing Indian market offers enormous opportunities for US exporters across sectors including transportation, energy and infrastructure development. He said that he was pleased about the fact that India took advantage of the new benefits offered by its participation in the Cape Town Treaty.

An international treaty, the Cape Town Treaty facilitates cross-border financing and leasing of aircraft, helicopters and aircraft engines. The Ex-Im Bank reduces its exposure fee by a third on asset-backed financing of new US-manufactured large commercial aircraft and spare engines for international buyers located in countries that ratify and implement the treaty.