Air India places hope on Dreamliner

AIR INDIA   BOEING   DREAMLINER 787

India - Debt-ridden Air India will be purchasing more of Boeing's new Dreamliner 787 in an attempt to emerge from the red and improve revenues.

It will find ways to raise about US$830 million for the purchase, and additionally try to keep its costs tight via the sale and lease back route, Channel NewsAsia reported.

The carrier already has four Boeing 787s due to be delivered by this year, and another 27 to be delivered over the next new years.

Chaiman of ASSOCHAM committee on aviation Subash Goyal believed the 787 planes will help change the image of the carrier.

"Aviation is such a business that you have to be ahead of the race. When 747s came, Air India was the first airline in Asia to have 747s. Now other countries have taken the lead. So we want Air India to come back to its glory."

The airline has been struggling with its finances as a result of pilot strikes, aircraft purchases, and a bad merger with Indian Airlines. The loans it is planning to take will be used to cover at least 85% of the aircraft purchase.

Meanwhile, it is required to return about US$4.6 billion in loans by the end of this fiscal year.

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