Air India is reportedly seeking a bank loan of $200 million to purchase a fleet of 777 planes from a US-based aircraft leasing company, according to a report of Bloomberg News.
The talks of the fund raise, the report added, have begun again after being put on hold following the crash of Air India flight 171 in June.
AI Fleet Services IFSC, a GIFT City-registered subsidiary of Air India, is the borrower of the loan, the report stated.
The move is part of the airline’s strategy to maintain a stable fleet while it awaits the delivery of new aircraft, Bloomberg noted. These purchases are aimed at bridging the gap until fresh deliveries begin.
People aware of the discussions told Bloomberg that the pricing for the proposed loan to fund the acquisition may be tied to the secured overnight financing rate (SOFR).