Debt-ridden Air India wants more money to expand fleet

Air India has to make an advance payment of three Boeing 777 aircraft for which it is seeking loan of more than Rs 1, 000 crore.

Air India is seeking loans from banks/financial institutions and as per the agreement with Boeing Company, the state-owned airlines has to pay 15 per cent of the gross cost of the aircraft 24 months prior to delivery.

The three aircraft are to be delivered to the carrier between January-March, 2018.

"Air India is pleased to invite your bank/financial institution to submit a fully underwritten offer for Pre- Delivery Payment requirements (PDP) for three Boeing 777-300 ER aircraft," the airline said.

Air India had earlier sought deferment of the delivery of the three Boeing 777-300ER planes, which are part of its 68- aircraft order placed with the US aircraft-maker in 2006.

However, the delivery of three B777-300ERs was postponed in the wake of the downturn in the global aviation sector in 2008 as there was no "cancellation" clause in the original purchase agreement with Boeing Company.

The state-owned carrier currently has 15 Boeing 777s in its fleet-- 12 of them B777-300ERs and the rest B777-200LRs.