With the first of 27 Boeing 787 Dreamliners for Air India expected next month, the cash-strapped national carrier has decided to sale-and-leaseback seven of these and has started looking for bridge financing worth $230 million.
While the first of the much-delayed planes would be delivered by the American manufacturer in January, the second would arrive in March, the third in April, and two each in May and June. The Air India board has already decided to sell these aircraft and immediate leaseback under an operating lease of 12 years, with an option to extend the period.
Under a sale and leaseback arrangement, one party sells a property to a buyer who immediately leases it back to the seller. This allows the initial buyer to utilise the asset, while not having capital tied up in it. Sources said the airline required interim bridge financing for six-12 months to accept the delivery of the first of two B 787-8 planes and has invited offers from banks and financial institutions to arrange for $230 million or equivalent of cost of two planes.