Air India to Sell, Leaseback Dreamliner Jets
January 29, 2013, 2:29 a.m. ET
NEW DELHI--Air India Ltd. has invited bids to sell seven 787-800 Dreamliner planes to leasing companies and hire them back even as half a dozen of the Boeing Co. BA +0.86% jets remain grounded.
A company spokesman told The Wall Street Journal that the sale and leaseback program is part of a plan by the loss-making state-run carrier to raise funds and move toward profitability.
Airlines sometimes sell planes at a premium to their buying price to leasing companies to raise cash and then lease them back on monthly rentals. The option is considered an effective method to free up capital.