India’s leading airline company Air India is once again in the headlines, but this time the reason is its plan to take a bank loan of $ 20 million (about Rs 1728 crore). The company wants to take a huge loan to buy a fleet of Boeing-777 aircraft. There is a lot of stir in the aviation industry about this deal and questions are arising whether it is just a common loan or is there a big strategic plan hidden behind it?
According to sources, AI Fleet Services IFSC Limited (which is Air India’s registered subsidiary in Gift City) is the main borrower company of this loan. This unit handles the purchase and leasing of aircraft. Air India, which is now under the Tata Group, currently operates through two brands-Air India (full-service) and Air India Express (low-altar).
Negotiations about this funding began earlier this year, but after the Boeing 787 Dreamliner crashed in Ahmedabad, the discussion slowed down for some time. Now once again the conversation regarding this deal has intensified, although the final decision is likely to change.
Boeing 777 aircraft
The special thing is that the Boeing 777 aircraft purchased are already present in the Air India fleet and are operating. These aircraft are 11 to 13 years old and are being used mainly on the Indo-US route. It is believed that Air India is planning to fully buy these aircraft due to delays in delivery of new aircraft and supply chain problems so that international flights are not interrupted.
Order of 570 new aircraft
Since the acquisition of the Tata group, Air India has ordered 570 new aircraft from Airbus and Boeing, but their delivery may take time. Therefore, this step of the company is considered to be important for temporarily meeting and strengthening the future. According to financial experts, this loan can be linked to international standards such as the SOFR (secured overnight finance rate), which will fix its interest rates.
