Air India is reportedly in discussions with Airbus and Boeing to acquire more wide-body jets, expanding its planned purchases to include up to 300 aircraft, according to sources familiar with the matter cited by news agency Reuters.
Sources told Reuters that the ongoing talks now encompass as many as 80 to 100 wide-body jets. This is in addition to previously reported talks for 200 narrow-body jets and 25-30 wide-body aircraft.
Adding further wide-body jets to its fleet would enable Air India to bolster its international network and replace ageing planes.
In June, Reuters reported that Air India was in talks with Airbus and Boeing for a major new aircraft order, including some 200 extra-narrow-body aeroplanes, supplementing a mammoth deal made in 2023. This was built on earlier discussions involving 25-30 wide-body jets, which Reuters reported in March.
Under the latest plans for the airline’s rebranding as a modern, global carrier, it is now looking at up to 300 more planes, the people familiar with the matter stated.
It was not immediately clear how many of these may involve options rather than firm orders.
Air India’s AIFS gets $215 mn loan from StanChart, Bank of India
Standard Chartered and Bank of India on Wednesday announced a term loan of $215 million to AI Fleet Services IFSC Limited (AIFS), Air India's aircraft leasing subsidiary based in Gujarat Gift City.
AIFS has entered into a seven-year amortising term loan facility to finance six Boeing 777-300 ER aircraft. A statement said that it will lease the aircraft to Air India.
Air India is currently undergoing a fleet renewal and expansion programme following its privatisation in January 2022.
Standard Chartered played a lead role as a structuring bank. The statement added that Bank of India and Standard Chartered also jointly underwrote the transaction as mandated lead arranger and bookrunner.
“This financing highlights our long-standing expertise in aviation finance and our commitment to supporting India's aviation sector as it continues its remarkable growth trajectory,” said Abhishek Pandey, Global Head of Transportation Finance at Standard Chartered.
“Air India has embarked on a five-year transformation journey, placing an order for 570 aircraft, and GIFT City will be important for financing these aircraft. With this commercial aircraft finance transaction via Standard Chartered and Bank of India, we see GIFT City maturing further and emerging as an aircraft leasing and financing option for airlines as Indian aviation takes strides,” said Sanjay Sharma, Chairman, AIFS, and Chief Financial Officer, Air India.