Air India set for approval to buy 27 Boeing 787s

Air India Ltd, due to be the second operator of Boeing Co 787s, will get final government approval to buy the planes this week, paving the way for the belated start of deliveries, two people familiar with the matter said. The state-owned carrier's plan to buy 27 planes will be signed off by a group of ministers at a meeting in New Delhi on Thursday, said one of the people, a civil aviation ministry official. The people declined to be identified as they aren't authorised to release the information. The airline will probably receive its first 787 this month, said the other person, an Air India official. The carrier will pay for the first two planes using a $230 million (Dh844 million) bridge loan, while it concludes a deal to sell and lease back the entire 787 fleet to help pare debts, he said. Air India ordered the Dreamliners in 2005 as part of a plan to buy 68 passenger jets worth about $8.1 billion to expand operations and introduce more fuel-efficient aircraft. The carrier has subsequently struggled with debts from the expansion plan, along with high fuel costs and price wars.