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Tuesday, 8 July 2014

Air India puts up 5 more Dreamliners for leaseback

New Delhi: Air India will sell and lease back five of its new Dreamliners as part of cost-cutting measures and save substantial sums to pay off the bridge loans it has taken against these aircraft, official sources said.
The national carrier has issued a tender inviting bids for the sale and leaseback of five Boeing 787-8 Dreamliners, which were delivered between August 26 last year and January 28 this year, the bid document said.
Leaseback, short for sale-and-leaseback, is a financial transaction where one sells an asset and leases it back for the long-term. Hence, one continues to use the asset but no longer owns it.

Air India has fixed a reserve purchase price of USD 116 million for an aircraft and bids below this amount would not be considered, the document said, adding that the airline would sell the five planes and immediately lease them back for a period of 12 years with an option to extend the lease.
The national carrier has so far taken delivery of 14 of these aircraft and concluded leaseback arrangement for the first seven of those. It had ordered 27 of these fuel- efficient planes in January 2006 from its US manufacturer.
Read news in full04/07/14 PTI/Economic Times

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