Air India ties up with UAE banks to acquire 3 B777 aircrafts

State-owned Air India has tied up with UAE-based First Abu Dhabi Bank as well as Standard Chartered Bank and Mashreq Bank to avail short-term loans for acquiring three Boeing 777 aircraft, Union minister Jayant Singh said on Thursday.

Two of the aircraft are to be used for ferrying VVIPs, the minister of state for civil aviation said in a written reply in the Lok Sabha.

The delivery of the three B777-300 ER planes is scheduled to be completed next month -- two in January and one in February.

"Air India has signed a short-term buyers credit facility



agreement with First Abu Dhabi Bank PJSC jointly with Standard Chartered Bank and Mashreq Bank PSC for acquisition of three B777-300ER aircraft," the minister said.

In early November, the disinvestment-bound airline issued a revised tender (after first floating it in October), soliciting interest from lenders for a loan worth up to $535 million (around Rs 3,460 crore).

Last month, the airline also floated tenders for securing loans worth over Rs 1,100 crore for modification of two Boeing aircraft for ferrying VVIPs -- the president, vice-president and prime minister.