In less than 18-months after getting the delivery of 21 Dreamliners aircraft – Boing 787-800 – national carrier Air India has decided to sell the remaining nine of them under the a ‘Sale and Lease Back (SLB)’ arrangement. Air India has already sold and leased back 12 Dreamliners under the SLB arrangement.
SLB arrangement allows the seller to lease back the asset from purchaser for a long-term period. Air India’s SLB arrangement will have the guarantee of the Government of India which will cover the lease rental obligation during entire leasing period.
Air India is hoping to raise around Rs 7,000 crore from these sales whose proceeds will go towards reduction in debt, repayment of existing loans and towards acquisition of smaller/other aircrafts. After the sale, the national carrier plans to lease back these nine aircrafts for a period of around 12 years, Air India said in an ‘invitation of offer’ document.
The airline has fixed a reserve price of not less than $120 million for the planes acquired in 2015 and $120 million for the aircraft inducted in the fleet during 2014, it said.
12/10/15 Ashish Sinha/Business World
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SLB arrangement allows the seller to lease back the asset from purchaser for a long-term period. Air India’s SLB arrangement will have the guarantee of the Government of India which will cover the lease rental obligation during entire leasing period.
Air India is hoping to raise around Rs 7,000 crore from these sales whose proceeds will go towards reduction in debt, repayment of existing loans and towards acquisition of smaller/other aircrafts. After the sale, the national carrier plans to lease back these nine aircrafts for a period of around 12 years, Air India said in an ‘invitation of offer’ document.
The airline has fixed a reserve price of not less than $120 million for the planes acquired in 2015 and $120 million for the aircraft inducted in the fleet during 2014, it said.
12/10/15 Ashish Sinha/Business World
