Air India to sell two Dreamliners

Air India will sell two more Dreamliners to raise $250 million for the repayment of a short-term loan it took earlier for purchasing these planes.

The national carrier has initiated the process of selling these two aircraft, which could fetch around Rs 1,700 crore, officials said. Air India has fixed the reserve price for each aircraft at $125 million.

After selling the planes, Air India plans to get them back on lease, a normal practice in the aviation sector. Air India had taken delivery of 23 Dreamliners and 21 have already been sold and then leased back.

The two aircraft now on the block were delivered to Air India on November 7, 2016, and January 9, 2017.

In its ‘Invitation to Offer’, the carrier indicates that it intends to operate the aircraft through 'Sale and Lease Back' (SLB).

On lease

Under SLB, Air India would sell these two planes to the lessor and immediately get them back under an operating lease for a period of up to 12 years, with an option to  extend the arrangement by another three years.