Air India's state-run parent NACIL said on Tuesday it had tied up about USD$214 million through loans to part-finance its purchase of eight Boeing aircraft.
NACIL said in a statement Bank of Scotland and Deutsche Bank were the lead arrangers of the loan, while ING Bank and Natixis Transport Finance acted as co-arrangers for the pre-delivery finance of three Boeing 777-200s and five 777-300s.
European and US export-import banks fund a large portion of aircraft purchases and carriers arrange for pre-delivery payments alone. Indian carriers have taken to selling aircraft on delivery to leasing firms and leasing them back to save on interest payouts.
NACIL said over the past two years it had raised more than USD$3 billion in long-term loans or bridge finance from international banks and financial institutions to finance its aircraft.
It said it had so far taken delivery of 38 aircraft from 111 ordered from Airbus and Boeing.
