Air India puts together ‘huge financing deal’ for new fleet: CEO Wilson

Air India has closed a “mega-financing deal” related to its new fleet in remarkably fast time, according to its chairman Campbell Wilson.

On February 14, Air India announced a historic order for 470 aircraft, including 250 from Airbus and 220 from Boeing. Besides, there is an option to purchase another 370 aircraft from the aircraft makers.

It was also the first time in more than 17 years that Air India, which was taken over by the Tata Group from the government in January last year, has placed orders for new aircraft.

In his weekly message to staff on Friday, Wilson said he wanted to commend his “commercial, strategic, finance, treasury and legal procurement teams for their success in putting together a huge financing deal relating to our new fleet in a remarkably quick time… It was another historic achievement for the new Air India”.

Specific details could not be confirmed immediately.

A lot of money is being invested in the airline, Wilson said, in an interview with PTI last month.

“Tata Group Air India has invested a list price of US$70 billion for the 470 aircraft. It is with the express aim of offering more services, especially international connectivity. We are ultimately doing this for many reasons, and one of the reasons is that we are getting a revenue economy from that investment. .

“I think if traffic is siphoned off all over the places, it makes it more and more difficult for us to get non-stop services and in the end, the customer loses because they won’t have any option for non-stop service,” he said.

It was responding to an inquiry regarding bilateral flight rights.

The order for 470 aircraft includes 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9 wide-body aircraft as well as 210 Airbus A320/321NEOS and 190 single-aisle Boeing 737 MAX aircraft.

In the letter, Wilson – the CEO and Managing Director – also mentioned the diversion of AI Flight 173 Mumbai-San Francisco this week and on how to handle the situation. He said it was “the effort of the Air India team”.

“From the injured crew and onboard personnel assisting stranded customers on the ground, to the engineering, flight operations, flight services, insurance, and other people who prepare and operate the relief flight.

“From our customer service and communications teams that help customers and share media, to our government and regulatory teams that keep their counterparts informed, everyone has played a role,” he said.

On June 6, AI 173 which was operating from Delhi to San Francisco with 216 passengers and 16 crew on board was diverted to the port city of Magadan in far eastern Russia after an in-flight malfunction occurred in one of the engines of the Boeing 777-200LR. They were all stranded in the port city for two days and the replacement plane flew them to San Francisco on June 8.