Cash-strapped AI in talks with Air Canada to lease out 5 Boeing 777s

Mumbai: Cash-strapped Air India is negotiating a deal with Air Canada to dry lease five of its Boeing 777-200 (long range) aircraft, airline sources said.

"We are in discussions with Air Canada to lease out these aircraft," Air India sources told PTI.

A team of officials from Air India would soon visit Canada to discuss modalities like leasing cost, etc in this regard, sources said, adding that the deal may be finalised as early as within next two-three weeks.

A founding-member of the Star Alliance, Air Canada is Canada's largest airline serving over 180 destinations in five continents. Besides, it also operates regional service Air Canada Express.

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With a combined fleet of 362 aircraft, a mix of Boeing, Airbus and Embraer aircraft, the Canadian flag carrier is the 15th largest commercial airline in the world, according to its website.

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The state-run AI had floated global tenders, offering five of its eight Boeing 777-200 LRs on dry-lease for 8-10 years early this year.

Out of these, four were manufactured in 2007, one in 2008 and three in 2009. The decision to lease out the Boeing 777s came in the backdrop of planned induction of Boeing 787 Dreamliners, the first of which is expected to arrive early next month.

PTI