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Air India Receives $200 Million to Finance Three Brand-New Dreamliners

Where: India
April 15, 2014 at 10:05 AM | by | ()

Another round of funding and investment is underway in India, and the amount of money that's being thrown around is no joke. The national carrier announced that it has been loaned $200 million by the country's bank, Bank of India, to purchase three brand-new Dreamliner airplanes.

That's not all. Air India expects to raise an additional $500 million from bridge loans and has received a $288 million tax credit to cover the cost of fuel, simulators, and spare parts. If it all comes through as planned, as many as six new Dreamliners could be in the airline's future.

Currently, Air India already has 13 Dreamliners in its fleet and has ordered a total of 27, so this is not exactly groundbreaking news. It is a huge sign of continued growth, though. It's also an interesting story to follow after news broke back in February that Air India was dissatisfied with the Dreamliner's performance. We suppose this purchase pretty much answers the question of whether Air India doubts Boeing's abilities in the long run.

[Photo: Business Today]

Archived Comments:

Air India Receives $ 200 Million from Bank of Indi

I for one cannot understand why Air India must take a bank loan to finance the purchase of the B 788 planes. Air India has one of the biggest markets in the world and by 2020 the Indian international travel will reach 100 Million. At this juncture it stands at over 40 Million passengers. So there is no shortage of business, but sad out dated policies that contribute to airline losing money. If pragmatic dynamic policies can be implemented then there is no need for any loans. The airline is in catch 22 situation. It does not make enough money because of shortsighted commercial policies. With shortage in cash flow it cannot pay bills or the staff their full salaries. Then in return staff do not work professionally and the result is even more worse. The sad plight is other airlines are living on India, but Air India cannot. Time has come for 360 degree turn in the airline commercial policies as otherwise even with B 787 planes AI will not make money. I feel rather sad that with few changes in the way it is cooking now the airline will look better. I really wish I can tell someone how to make these strategic changes, but then whom to tell?