Air India gets $1.23bn US Exim loan for Boeing aircraft purchase

New Delhi: The US Exim Bank will arrange a loan of $1.23 billion for National Aviation Co of India Ltd (NACIL), the holding company for the country''s merged carriers Air India (AI) and Indian Airlines, which will constitute 85% of the total amount required for the 17 planes that Boeing Co is scheduled to deliver to the carrier by December this year senior Air India officials have informed the media.

The remaining 15% will be raised by Air India on its own, they said. The loan is from a consortium of banks.

The financial package also covers the cost of four spare engines from General Electric Co, officials clarified. The 17 planes include different versions of the 777 and 737 family of aircraft manufactured by Boeing. The 17 aircraft are part of an overall package of 68 aircraft, contracted for with Boeing in 2005.

According to AI officials, apart from a final commitment with respect to these 17 aircraft, US Exim has also made a preliminary commitment for the remaining 51 aircraft, in the process covering the entire package of 68 aircraft contracted with Boeing at a list price of $11 billion.

The airline has already received a sovereign guarantee from the Indian Government for the entire deal.

Air India''s acquisition plan includes inducting 18 Boeing 737-800, 27 Boeing 787, 8 B777-200 Long Range and 15 B777-300 Extended Range aircraft. The airline has already received a part of the order, including at least three Boeing 777-200 Long Range aircraft and some Boeing 737-800 aircraft.