Air India To Fund $70 Bn Plane Order With Cash, Equity: Report

Air India on Monday said that it seeks to fund its USD 70 billion order for 470 aircraft with internal cash, equity and through sales-and-leasebacks, news agency Reuters reported.

To rapidly expand its presence globally, Tata Group-owned Air India on 14 February said that it would buy 250 from Airbus and 220 planes from Boeing.

On Monday, Air India Chief Executive Officer Campbell Wilson said that the order was driven by recognition of the opportunity for Indian aviation and putting in place the investment in the capacity of the aircraft.

He added that the new order of 70 widebody planes combined with its existing fleet and other leaser aircraft means “a many-fold increase in Air India’s widebody long-haul fleet, and therefore, capacity.”

Wilson stated that there is an untapped opportunity in direct flights to North America and that Air India will also increase the frequency of flights to European destinations.

The airline is spending USD 400 million on refurbishing and upgrading its planes, especially on long-haul routes, as it looks to compete with bigger rivals such as Emirates.

Air India is inducting 500 cabin crew each month, Wilson said. Last week, the airline said it would hire more than 4,200 cabin crew and 900 pilots.