Air India to use proceeds from Boeing 777 sale to pay off loan: report

February 16, 2014

Air_IndiaNew Delhi, Feb 16: Air India, which is in the process of selling five Boeing 777 aircraft to Etihad and carrying out sale-leaseback of its Dreamliners, would use the proceeds to pay off aircraft loans and meet working capital needs, according to official sources.

The sale of five Boeing 777-200 Long Range aircraft to Abu Dhabi-based Etihad Airways is estimated to fetch $336.5 million for the ailing national carrier. The title of these planes would be transferred to Etihad by April, the sources said.

The decision to sell these planes was taken after exploring other options like leasing, re-configuring them or deploying them on short-haul routes. However, all these options were found economically unviable, they said. The airline also projected that it could raise about $840 million by way of sale of its seven Boeing 787-8 Dreamliner planes and lease them back. It intends to pay off the bridge loans taken against these aircraft by using the funds, the sources said.

For the first seven of the Dreamliners it received, Air India has mandated the leaseback arrangement with Investec Bank for four of them and Deutsche Bank for three. This year, the airline, which has 11 Boeing 787s, would get six more.

Sale-leaseback or leaseback is an arrangement in which an owner sells an asset to a leasing firm and, at the same time, leases it back. Therefore, one continues to be able to use the asset on a long-term basis but no longer owns it. All proceeds thus received would be adequate to repay the aircraft loans, while the the surplus generated could be used to clear debts meet the airline's working capital needs, the sources said. Air India's huge debt and liabilities are estimated at over Rs. 20,000 crore.

These measures were being taken in line with the turnaround and financial restructuring plans, they said.

The sale of the Boeing 777 aircraft to Etihad was approved by the Cabinet Committee on Economic Affairs in November last year, soon after the Gulf carrier received regulatory approvals to pick up 24 per cent stake in Jet Airways.

Etihad plans to use these five aircraft to launch non-stop flights between Abu Dhabi and Los Angeles from June. Air India, which had acquired the Boeing 777 aircraft as part of the 68 aircraft it bought from the US manufacturer in 2006 in a deal totalling Rs. 35,000 crore planned to sell these planes on grounds of being fuel-guzzlers and replace the long haul sectors operated by them with the fuel-efficient Dreamliners.

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

Apart from this, the national carrier had also booked 43 planes from Airbus which have already been inducted into its fleet.

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Agencies
May 31,2020

New Delhi, May 31: The fourth phase of the coronavirus-triggered lockdown, which began on May 18, saw 85,974 COVID-19 cases till 8 am on Sunday, which is nearly half of the total cases reported in the country so far.

Lockdown 4.0, which will end on May 31 midnight, has accounted for 47.20 per cent of the total coronavirus infection cases, number crunching from the Union Health Ministry data reveals.

The lockdown, which was first clamped on March 25 and spanned for 21 days, had registered 10,877 cases, while the second phase of the curbs that began on April 15 and stretched for 19 days till May 3, saw 31,094 cases.

The third phase of the lockdown that was in effect for 14 days ending on May 17, recorded 53,636 cases till 8 am of May 18.

The country had registered 512 coronavirus infection cases till March 24.

India is the ninth worst-hit nation by the COVID-19 pandemic as of now.        

The first case of COVID-19 in India was reported on January 30 from Kerala after a medical student of Wuhan university, who had returned to India, tested  positive for the virus.

India registered its highest single-day spike of COVID-19 cases on Sunday, with 8,380 new infections reported in the last 24 hours, taking the country's tally to 1,82,143, while the death toll rose to 5,164, according to the Union Health Ministry.

The number of active COVID-19 cases stood to 89,995, while 86,983 people have recovered and one patient has migrated, it said.

"Thus, around 47.75 per cent patients have recovered so far," a senior Health Ministry official said.

With the fourth phase of lockdown ending on Sunday, the Home Ministry on Saturday said 'Unlock-1' will be initiated in the country from June 8 under which the nationwide lockdown will be relaxed to a great extent, including opening of shopping malls, restaurants and religious places, even as strict restrictions will remain in place till June 30 in the country's worst-hit areas.

While announcing the extension of the lockdown in containment zones across the country, the Home Ministry said temples, mosques, churches and other religious places and shopping malls will be allowed to open in a phased manner from June 8, while a decision on opening of schools and colleges will be taken in July in consultation with states.

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News Network
May 21,2020

Kolkata, May 21: Around 300 nurses have left Kolkata for Manipur after resigning from their jobs, said JS Joyrita, Deputy Residence Commissioner, Manipur Bhavan, Kolkata on Wednesday.

"Around 60 more nurses will be leaving tomorrow. We are getting many calls from people who want to go back to Manipur," she said.

Earlier, it was reported that 185 nurses have quit their job from hospitals in Kolkata and returned to Imphal. Cristella, a nurse said: "We are not happy that we left our duties. But we faced discrimination, racism and people sometimes spit on us. Lack of PPE kits, and people used to question us everywhere we went."

According to the latest information available on the website of the Ministry of Health and Family Welfare, 2961 cases of the virus have been reported from West Bengal 1074 cured/migrated/discharged and 250 deaths.

India's COVID-19 tally reached 1,06,750 on Wednesday, according to the Union Ministry of Health and Family Welfare. As many as 140 deaths have been reported in the last 24 hours, taking the total number of deaths to 3,303. Out of the total cases, 61,149 are actives cases and 42,298 patients have been cured/discharged/migrated.

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News Network
March 3,2020

Wayanad, Mar 3: Anguished over the alleged delay in receiving flood relief from the Kerala government, a 42-year-old man committed suicide in Wayanad district, police said on Tuesday. Sanal Kumar, a native of Thrikaipatta in Meppadi near here was found hanging inside the temporary shelter built by his friends and local people on Monday. He was among the hundreds who had lost their homes in the August 2019 floods.

His home, built on a three cent plot, had been damaged partially in 2018 floods and completely in the 2019 deluge. Family members of the deceased alleged that it was due undue delay on the part of the authorities in allotting funds for rebuilding his house that drove Kumar to take the extreme step. Kumar was hoping to get a house under the Life Mission project, sources said.

A relative said Kumar had only 3 cent of land and had lot of debts. Even the Rs 10,000 assistance promised by the state government for the flood affected, had not reached him. Since the past two years he had filed several applications for assistance and apporached many revenue authroties for the promised government assistance, but it never came, the locals alleged.

According to K K Sahad, president of Meppadi Panchayat the deceased had some other financial issues and it was not the delay in rehabilitation that made him commit suicide. "It is true that he was not included in the first list of beneficiaries under the LIFE project as he had to have "pattayam" (land records) for his land.

However, he was included in the second list, thanks to the dilution in the norms that possession was enough for those who had no 'pattayam' for their property. The amount of Rs 4 lakhs was sanctioned for him, but was delayed a bit due to some technical issues."

Wayanad MLA C K Saseendran described it as an "extremely sad" development. As Kumar had some difficulties in producing the land recrods, the authroties had been unable to include his name in the LIFE housing scheme in the first phase.

The matter has been brought before the notice of the revenue authorities, he said. Vythiri Tahsildar, Abdul Hameed, visited Kumar's relatives this morning as the family members of the deceased wanted his presence before the body was taken for post-mortem.

"There was some technical issues with regard to the land as it falls within the adhivasi reserve. But they were occupying it for long. However, the issue has been sorted out and that his family members would be getting the eligibility amount of four lakhs," Hameed said.

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