Winning Bizness Desk
Mumbai. Air India is planning to take a $200 million (around ₹1,700 crore) loan to purchase Boeing 777 aircraft, according to a news report. The planes will be bought from a U.S.-based leasing company through Air India’s subsidiary, AI Fleet Services IFSC Ltd, which is registered in Gujarat’s GIFT City.
This could be Air India’s first aircraft acquisition since the deadly crash in Ahmedabad on June 12, when a Boeing 787 Dreamliner crashed, killing 260 people. Despite that, the airline appears set to continue with Boeing aircraft.
Used Planes for Immediate Needs
Due to delays in new aircraft deliveries and global supply chain issues, Air India is likely to buy 11–13-year-old Boeing 777s. These aircraft are well-suited for long-haul international routes such as India–U.S. Currently, Air India’s fleet includes 191 aircraft — 64 wide-body and 127 narrow-body.
Talks Underway for 200 More Aircraft
According to Reuters, Air India is also in talks with Airbus and Boeing to purchase around 200 new single-aisle aircraft, mostly narrow-body jets. This comes on top of the massive 2023 order of 470 aircraft, the world’s largest-ever aviation order.
Massive ₹6 Lakh Crore Deal Already Signed
In 2023, Air India signed a ₹6 lakh crore deal with Airbus and Boeing for 470 aircraft. Of these, 250 are from Airbus (including 40 A350 wide-bodies and 210 A320neo narrow-bodies), and 220 are from Boeing (including 190 B737 Max, 20 B787s, and 10 B777X).
Privatization and Tata Takeover
Air India was privatized on January 27, 2022, when Tata Group took over the airline from the government in a ₹18,000 crore deal. Since then, Air India has been aggressively modernizing its fleet and revamping operations.
Global Presence and Expansion Goals
Air India operates 59 non-stop international routes and flies to 79 destinations worldwide. The airline currently has 128 narrow and wide-body aircraft and a workforce of over 12,000 employees. It has also placed strategic bets on expanding its global footprint.
Why the Used Aircraft Now?
The decision to buy used aircraft seems to be a temporary measure to meet immediate long-haul demand, as new aircraft deliveries are taking longer. Despite the tragic crash in Ahmedabad, Air India is continuing to invest in Boeing aircraft for its global expansion.
7 Key Points in a Nutshell
- Air India plans to borrow ₹1,700 crore to buy Boeing 777 aircraft.
- These used planes (11–13 years old) will serve long-haul routes.
- The purchase will be made through AI Fleet Services in GIFT City.
- This is the first deal after the Ahmedabad Boeing crash.
- Air India is also negotiating a new deal for 200 more narrow-body planes.
- In 2023, it ordered 470 aircraft worth ₹6 lakh crore from Airbus and Boeing.
- Air India is revamping under Tata’s ownership since its 2022 privatization.
