=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2006/02/15/financial/= f222406S19.DTL --------------------------------------------------------------------- Wednesday, February 15, 2006 (AP) Air India to Raise Up to $8B for New Jets (02-15) 22:24 PST NEW DELHI, India (AP) -- State-run Air India is to raise between $7 billion and $8 billion to buy 68 airplanes from Boeing Co., the largest ever deal in Indian aviation, officials said Thursday. The money will be raised from domestic and overseas banks, and the airli= ne has already secured an initial $500 million in financing, Air India spokesman Rahul Chopra said. Under the deal inked in January and initially valued at $11 billion, Air India agreed to purchase 27 787s, 15 777-300ERs and eight 777-200LRs. Air India also plans to buy 18 additional planes for Air India Express, its low-cost subsidiary. Air India, which currently has a fleet of 42 aircraft, is replacing its aging planes in hopes of better competing with private carriers. Air India will ask Chicago-based Boeing to devise a payment system for t= he jet acquisitions, an unnamed Air India official told the Times of India newspaper. Chopra confirmed the details of the report, attributing the quotes to a senior director. The official didn't say when the request for a proposal will be floated. The report said the loans will have a tenure of 10 to 12 years depending on the delivery of the aircraft. India's aviation sector is rapidly expanding, with new private airlines taking to the skies and the government moving toward privatization to improve airport infrastructure. -------------------------------------------= --------------------------- Copyright 2006 AP