Air India tied up with Abu Dhabi Bank for loans for 3 B777 planes

Vastavam web: State-owned Air India has tied up with UAE-based First Abu Dhabi Bank as well as Standard Chartered Bank and Mashreq Bank to avail short-term loans for acquiring three Boeing 777 aircraft, Union minister Jayant Singh said on Thursday.Two of the aircraft are to be used for ferrying VVIPs, the minister of state for civil aviation said in a written reply in the Lok Sabha.In early November, the disinvestment-bound airline issued a revised tender (after first floating it in October), soliciting interest from lenders for a loan worth up to USD 535 million (around Rs 3,460 crore).

Last month, the airline also floated tenders for securing loans worth over Rs 1,100 crore for modification of two Boeing aircraft for ferrying VVIPs — the president, vice-president and prime minister.Of these, the state-run carrier has already taken the delivery of 65 planes, including 12 B777-300ERs.Following the downturn in the global aviation sector, the delivery of three B777-300ERs was postponed in 2010 as there was no “cancellation” clause in the original purchase agreement with Boeing Company.