Air India Extends Last Date of Loan Tender to Finance Dreamliner Purchases

Air India Ltd. has extended to Sept. 7 the last date for lenders to offer it a bridge loan of $500 million, according to the latest tender document on the national carrier's website.

The earlier deadline was Aug. 24.

Air India plans to raise the loan to finance the purchase of four Boeing Dreamliner planes, which will be delivered between August and December.

The airline has ordered a total of 27 Dreamliners, the first of which will be delivered in the next few days.

The carrier has already tied a bridge finance of the first two planes. The carrier will, after taking delivery of the planes, sell them to a leasing company and operate them by paying monthly rentals, a common fund-raising procedure among air carriers.

The funds from the sale to lessors will be used to repay the bridge loan.