Airbus to hold talks with IA on aircraft financing prospects

New Delhi: A delegation from European aircraft manufacturer Airbus will hold consultations with the state-owned domestic carrier Indian Airlines (IA) on Monday regarding the financing prospects of all the 43 aircraft recently ordered by the company, sources said.
IA bought the A-320 family of aircraft at a list price of $2 billion.
IA has already finalised the financing programme for the first 10 aircraft, the delivery of which will be completed by mid-2008. German national bank, KFN, will provide $540 million to the airline company. The financing plans for the remaining planes will be finalised upon the completion of the delivery of the 10 aircraft by early 2008. The carrier has already received its first aircraft in October this year. The government has granted a sovereign guarantee on 36% of the entire amount loan amount to be taken by IA.
Earlier, Indian had signed a memorandum of understanding (MoU) with ICICI Bank for part funding of the pre-delivery advance payments.
04/11/06 Atreyee Dev Roy/Financial Express

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