Boeing to inject $185 million in Air India JV

11 July, 2007:

Aerospace major Boeing wil pump in close to $185 million in a joint venture with Air India. The proposed investment of $185 million is part of a deal for the sale of 68 aircraft, including 27 of its latest offering - the Boeing 787 Dreamliner - to the Indian national carrier.

Boeing is promoting the jet as a super-efficient airplane with new customer-friendly features. Several airlines including Air India and Jet Airways have placed orders and firm commitments for aircraft. Jet Airways has placed an order for 10 Boeing Dreamliners.

It has been reported that the proposed joint venture will extend to maintenance, repair and overhaul (MRO) facilities for Boeing 777 and 787 aircraft to third parties. The Boeing investment in the MRO joint venture will comprise $100 million for setting up the unit, $75 million for training, and $10 million for general purposes.

The proposed MRO, which will be one of the five Strategic Business Units of the restructured company following the merger of Air India and Indian, will cover both airframes and engines with Boeing offering its expertise for airframes. Air India is looking for a partner for the engines.

Air India, which has chosen the Dreamliner primarily for its fuel efficiency, will deploy the 787 on denser routes of Asia, Africa, Europe and the USA while its subsidiary Air India Express will use the 737-800s on the Gulf, West Asia and South-East Asian routes.