Air India has made pre-delivery payment to US-based aircraft manufacturer Boeing for the 220 planes it has ordered, the carrier’s Chief Financial Officer Vinod Hejmadi said on Friday.
Pre-delivery payments (PDPs) are instalments that an airline has to pay the manufacturer when the aircraft are being built. It can amount to about 30 per cent of the price of the aircraft.
A year after being acquired by the Tata group, Air India had in February placed an order for 470 planes — 250 with European plane maker Airbus and 220 with Boeing — in the world’s largest single-tranche aircraft purchase order. The list price for 220 Boeing planes is approximately $34 billion.
