MUMBAI, May 19: Boeing, the US-based airline company, on Tuesday reiterated its commitment in selling aircraft to India. Though the recently imposed economic sanctions by the US will close doors to seeking US Exim bank guarantee for purchase of its aircraft, Indian buyers will still have various options to fund the deal against assets, said Dinesh A Keskar, president, Boeing India.There are several institutions in Europe and Asia which will be willing to fund such projects, he said. Buyers will always go for a cheaper loan and need not look for an US Exim bank guarantee if they get a better deal elsewhere, he added.While the pending order of 737-400 for Jet Airways will be processed as per schedule, Boeing has sought clarifications from the bank on the issue of guarantee for the six Boeing 737-800 to be delivered, Keskar said.Clarifications were being sought as "this is the first time we are facing such a situation. "We are trying to understand the exact impact of the sanctions but in no way willthese restrict the company from selling aircraft to Air India, Indian Airlines or private carriers in the country," he said.Keskar said Boeing has already made presentations to Indian Airlines for replacing the Boeing 737-200 with the new 717-100 and 767-300, 767-400 and also the 777 to take over from the ageing Airbus A-300s.On the replacement of three Air India Airbus (A300 B4), he said the Boeing 767 had been offered though the airline had the option to go in for the seventh Boeing 747-400.On the medium capacity long range (MCLR) deal for Air India in which Boeing (Boeing 777s) is in race with Airbus (A340), Keskar said, "We had made the best offer for the Boeing 777 in October 1995 and it still stands." However, it is learnt that the fate of Jet Airways' six Boeing 737-800s still hangs in balance with the US Exim yet to clarify its stand on the proposed guarantee. The understanding is that the bank will not change its position on any of the agreements signed till May 13, 1998.Of the 10 Boeingsordered by Jet Airways in 1996, US Exim bank had given the final commitment to guarantee the loan for four 737-400s. The remaining six 737-800s had only received the bank's preliminary consent and a clarification is being sought by Boeing on the issue. The first of the six 737-800 aircraft is scheduled to be delivered by this December.Industry sources, however, say that it is unlikely that the bank will consider the deal as closed. "The ongoing negotiations, even if they have in-principle approval, do not imply a final commitment," sources add.It remains to be seen how Jet Airways will arrange the funding in lieu of the US Exim bank guarantee. Chairman, Naresh Goyal, said "We don't see any problems and we have not discussed the matter yet."
