Dreamliners run aground, AI loses hopes of seeing cash flows aloft
According to officials in the ministry of civil aviation, the airline had pinned hopes on three things for a rebound in its operating cash flows or the earnings before interest, taxes, depreciation and amortisation or EBITDA this fiscal.
They are: the sale of land near Air India’s registered office in New Delhi; renegotiation of contracts with oil marketing companies; and the proposed sale and lease back of the six Dreamliners that are currently grounded after a DGCA advisory issued on Thursday.
“The sale of land in Delhi is set to give Air India Rs 600 crore and the sale and lease back of the Dreamliners is likely to give another Rs 500 crore, which was expected to help boost earnings this financial year. The grounding of the planes has put a spanner in the works,” said a senior ministry official.
Especially so, since it is not clear by when the aircraft would be declared airworthy by global aviation regulators.
According to ministry estimates, the airline would make an estimated Rs 90 crore per aircraft through the sale and leaseback arrangement.
“The first six Dreamliners have come at a cost of $98 million per aircraft and the sale will happen at a rate of
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