Air India is in talks with Life Insurance Corporation of India for a loan of up to Rs.10,000 crore to help finance the acquisition of six Boeing 787 and three 777 aircraft. The nine aircraft, which are to be delivered in 2016-17 and 2017-18, are a part of the 68 Boeing aircraft order which the airline had placed in 2005. Air India will approach the Cabinet to gets its approval for the outright purchase of these nine aircraft instead of going in for a sale and lease back (SLB) arrangement as it had done when it signed an agreement for the purchase of 68 Boeing aircraft in 2005.
LIC is keen that Air India own these aircraft so that the loan can be extended.
Air India taps LIC for Rs.10,000-cr loan
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