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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 26,2020

New Delhi, Jun 26: Petrol prices in the national capital have reached Rs 80.13 per litre on June 26, up by 21 paise from yesterday’s Rs 79.92 per litre; while diesel prices in Delhi also rose to Rs 80.19 per litre – up by 17 paise compared to yesterday’s Rs 80.02 per litre.

This is the 20th consecutive day that fuel prices have been hiked by oil marketing companies (OMCs). The hikes began from June 8 after a 83-day halt on revised pricing during the lockdown period.

The state government’s increased value-added tax (VAT) on diesel since May is causing the fuel’s prices to soar in Delhi. VAT was increased to 30 percent for both petrol and diesel from 27 percent and 16.75 percent, respectively.

Coupled with the Centre’s hiked excise duty of Rs 3 per litre since March 14 and then Rs 10 per litre on petrol and Rs 13 per litre on diesel since May 5 has affected prices.

The hike on diesel prices is unusual, as the government traditionally keeps the price for the fuel low due to its impact on agriculture and other high consumption economic activities.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 3,2020

Jammu, Jun 3: A mob on Tuesday disrupted the last rites of a coronavirus victim in Jammu and Kashmir and forced his family members to flee with the half-burnt body, prompting intervention by the administration which later ensured the cremation at another place as per protocol.

A 72-year-old man, hailing from Doda district, became the fourth victim of the novel coronavirus to die in Jammu region. He breathed his last at the Government Medical College (GMC) hospital on Monday.

"We had set out for the funeral along with a revenue official and a medical team, and had lit the pyre at a cremation ground in Domana area when a large group of local residents appeared at the scene and disrupted the last rites," son of the deceased said.

Only close relatives of the deceased, including his wife and two sons, were present during the cremation. They had to flee with the half-burnt body in an ambulance to save their skin from the mob which pelted stones and attacked them with sticks.

"We had sought permission from the government to take the body to our home district for the last rites, but we were told that all necessary arrangements were in place, and that we would not face any trouble during the cremation," the victim's son said.

He also alleged that the security officials present at the scene were of no help.

Two policemen who were present there failed to act against the unruly crowd, while the accompanying revenue official went missing, he said.

"The ambulance driver and other staff from the hospital helped us a lot and managed to take us back to the GMC hospital with the body the government should have come out with a better plan to conduct the last rites of coronavirus victims, taking into consideration the past experience and problems encountered during the funeral of such victims," the victim's son said.

Later, the body was taken to a cremation ground at Bhagwati Nagar area of the city, where it was consigned to flames in the afternoon in presence of senior civil officials, including additional deputy commissioner and sub-divisional magistrate under tight security.

"My uncle was admitted in the hospital last week and died on Monday afternoon. He was suffering from various ailments, especially lungs and heart diseases. Before shifting him to GMC hospital Jammu, he underwent a coronavirus test in Doda which came negative," nephew of the deceased said.

However, he said, the victim's second test after his admission in the GMC hospital came positive on Sunday.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
February 26,2020

New Delhi, Feb 26: The death toll in northeast Delhi communal violence over the amended citizenship law rose to 20 on Wednesday, according to GTB Hospital authorities.

On Tuesday, the death toll was 13.

"The death toll has risen to 20 today," Medical Superintendent of GTB Hospital, Sunil Kumar, told PTI.

Earlier, at least four bodies were brought to the Guru Teg Bahadur Hospital from the Lok Nayak Jai Prakash Narayan Hospital, a senior official said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.