Published Date:
02-Dec-2011
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shipping-exchangeThe carrier aims to opt for a sale-and-leaseback arrangement to partially stem the financial drain this will entail, Air India’s board decided on Tuesday in a meeting.


The airline also plans to lease out some of its planes, both old and new, to reduce its debt burden of Rs43,777 crore. The carrier is also considering a proposal to replace full meals with a snack for flights of less than 90 minutes and to do away with hot meals for flights of less than an hour.


The carrier expects to save Rs300 crore by leasing aircraft and another Rs250 crore through the renegotiation of contracts in material consumption in this fiscal year, according to two senior Air India executives who didn’t want to be named.


The board also decided that the carrier may lease out excess capacity of two Boeing 747-400? planes and some Boeing 777-200? long-range planes once the airline receives the Boeing 787s, also known as the Dreamliner.


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Mint’s P.R. Sanjai says cash-strapped Air India will go ahead with its plan to acquire 27 Boeing 787 Dreamliner planes but will use cost-cutting methods to reduce its burden

The ministry of civil aviation has said previously that Air India has no money to buy the 787s and was exploring the option of postponing or cancelling a portion of the 27-plane order.

Air India said in a press release that the board approved the issue of a request for proposal for the 787 aircraft under the sale-and-leaseback mechanism, pending government clearance.