Air India turns to banks, financial institutions for financing Dreamliner purchase

NEW DELHI: Air India is seeking offers from banks and financial institutions to raise $110 million for making the advance payment for six Dreamliner ( Boeing 787-8) aircraft which the carrier has to acquire during the next fiscal.

Air India is seeking these funds on floating as well as fixed interest rates or both, said the Invitation of Offers document posted on its website today.

The state-run airline currently has 21 Dreamliners in its fleet.

Air India had in January, 2006, placed orders for 68 aircraft with Boeing - 27 Dreamliners and 41 B-777s and B-737-800s.

As per the agreement, the airline is required to make an advance of 10 per cent of the gross cost of the aircraft 12 months prior to its scheduled delivery.

According to the Boeing Company website, the listed price of a Boeing 787-8 aircraft was $218.3 million in 2014.

Air India has a fleet of 114 planes, comprising Boeing, Airbus, ATR and regional jets.