Air India Ltd is in talks with banks to help fund its recently announced record aircraft order, the carrier’s CEO has said.
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Air India The airline has ordered 470 aircraft from both Boeing Company and Airbus SE, with deliveries set to begin later this year. Discounts are common for such large purchases. Carrier’s CEO said that Air India Limited It is in talks with banks to help fund its recently announced record aircraft order and is benefiting from the backing of new owner Tata Sons Ltd. Air India is backed by Tata Sons, so funds are available for these aircraft. The company has already made some downpayment for these aircraft.
In this case, Wilson said last month that the formerly state-run carrier would help to get back cash, shareholder equity and the sale and lease of the aircraft. Air India is looking to expand by taking on the likes of Emirates and Qatar Airways, which dominate lucrative routes from India to Europe and the US through their hubs in Doha and Dubai.
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Aided by a strong local market and growing middle class, India has been quicker than other countries to return to pre-Covid levels of air traffic. According to the Sydney-based CAPA Center for Aviation, domestic air traffic is expected to increase by 20% to 160 million passengers by March 2024, and the country could operate a fleet of 1,400 jets by 2030.
Air India was bought by Tata for $2.4 billion.
India plans to spend around 980 billion rupees ($12 billion) over the next two years on airports, including building new terminals and upgrading existing facilities to meet growing demand. A large part of this may come from smaller cities where air travel is less accessible. India’s largest group Tata bought Air India from the government in 2021 for $ 2.4 billion.
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Passengers will get better facilities
Air India is preparing to integrate Vistara, a joint venture between Singapore Airlines Limited and the Tata Group, into a single, full-service carrier. The airline is spending $400 million to upgrade its planes body-wide, replacing all seats and in-flight entertainment systems with new products. With this, better facilities will be provided to the passengers traveling by air.