NACIL board approves $469mn funding programme

31 Dec 2007

Mumbai: The board of directors of National Aviation Company of India Ltd (NACIL), the merged entity comprising of the erstwhile Air India and Indian Airlines, has approved the borrowing programme for three aircraft and two spare engines amounting to $469.415 million. These will include one B777-200LR and two 777-300ERs.

The three aircraft would be inducted into Air India's fleet during 2008, a statement from the company said.

In tandem the board of directors of Air India Charters Ltd (AICL) has given approval to a borrowing programme for five B737-800s and three spare engines, amounting to $243.605 million. AICL is a subsidiary of NACIL and operates the cargo service, Air India Express.

These aircraft will be inducted into the fleet of Air India Express between January 2008 and March 2009. However, the bankers for the funding programmes are yet to be finalised.

The statement added that the first tranche of finance, covering four B777-200 LRs, three 777-300 ERs and two spare engines for NACIL, and ten 737-800s and two spare engines for AICL approved earlier, will be completed by December 31.

The last B777-200 LR under the first tranche of financing will be delivered to NACIL on December 31 at Seattle.

Air India received funding for the first round from the Exim Bank.