Etihad Airways PJSC has bought five Boeing 777-200 LR (long range) planes from Air India Ltd for an undisclosed amount. As part of its turnaround plan, debt-laden Air India put eight of its wide-body Boeing 777-200 LR planes on the block. An Air India executive confirmed the state-run airline sold five of its 777-200s, popularly known as Worldliners, to Etihad Airways. The sale is ?subject to Air India?s board and government approvals,? the executive was quoted as saying in a report by P R Sanjai in Mint.
Etihad Airways will deploy the planes to launch direct flights to Los Angeles and California. Recently, Etihad announced the launch of direct flights to Los Angeles from its hub Abu Dhabi from June 1 next year. The sale of the five plans is likely to fetch Air India USD 500 million, but executives declined to name specific numbers. Air India has a total debt of Rs 40,000 crore and is in the midst of a Rs 30,000-crore government bailout after reaching near bankruptcy in the past six years. The airline will get the funds only after meeting certain turnaround targets.
In March, Air India had decided to sell five out of its eight Boeing 777-200 LR aircraft due to a tepid market, steep increase in fuel prices and poor yields on non-stop routes.