ICICI gets nod to refinance AI loan for buying A 320s

MUMBAI: National Carrier Air India has given a mandate to ICICI Bank to refinance loans to purchase 21 A-320 aircraft. Though a meeting of independent directors with former civil aviation minsiter Praful Patel was scheduled prior to the board meeting to tharsh out contentious issues, it had to be cancelled as prime minister reshuffled the cabinet and Vyalar Ravi was given additional charge of the Civil Aviation ministry.


Most of these issues, including the appointment of Air India Express CEO Pawan Arora, were kept in abeyance due to the change of guard.


The airline's board, which met in Mumbai on Wednesday, has also given the go-ahead for delivery financing for B-777-300-ER and one GE-90 spare engine with funding amounting to $475 million from the US Exim Bank, said a release.


While Citi Bank will provide 85% of the finance and the rest will be sourced from Stanchart, the release added.


The board meeting, which was attended by independent directors including Anand Mahindra, also approved the disposal of four A-310 aircraft with simulators and dry lease of A--330s besides ratifying the decision to continue dry lease of B-737-800 for Air India Express. "Independent directors are working very hard for improvement of the national airline," said Yousuf Ali, independent director, Air India.


Air India Express will have a fleet of 21 including 17 aircraft owned by the low-cost airline operating from Trivandrum. The board has also give green signal for the purchase of 30 acres to