Air India is seeking a $200 million bank loan to purchase a fleet of Boeing 777 planes from a US-based company. Talks on the matter reportedly began earlier this year — slowing briefly after the devastating Ahmedabad plane crash. More than 250 people were killed last month after a Boeing Dreamliner operated by Air India crashed mere minutes after taking off for London.
According to a Bloomberg report, AI Fleet Services IFSC Ltd is seeking the borrower for the loan. The GIFT City-based subsidiary of Air India was created in 2023 to handle aircraft leasing activities. Fundraising talks had reportedly started earlier this year and slowed down in June following the Air India plane crash. People familiar with the matter told Bloomberg that discussions have been revived in recent days, but the details of the deal could still change.
300 aircraft fleet
Reports at the beginning of January 2025 indicated that Air India had approximately 300 active aircraft following the Vistara merger. The company has placed orders for 570 new aircraft over three years — both Airbus and Boeing — after the Tata Group took over in January 2022. But it has struggled to expand its fleet due to supply chain constraints impacting deliveries and its ability to acquire planes from the open market. According to the Bloomberg report, Air India could expedite the delivery of narrow-body Boeing 737 Max jets by taking possession of 50 planes that were initially meant for Chinese carriers.
Boeing 777s are typically used for long-haul flights with a capacity between 300 to 400 passengers. The Air India fleet currently includes eight Boeing 777-200LR wide-body, ultra long-haul planes and 19 Boeing 777-300ER wide-body long-haul aircraft.
Boeing under scrutiny?
Boeing has come under additional scrutiny in recent weeks with India and some other nations mandating safety inspections following the Ahmedabad plane crash. The two companies are also cooperating with Indian regulators and their foreign counterparts to ascertain the reason behind the devastating crash in June. Airlines such as Ethihad and countries including South Korea had ordered fuel switch checks last week after it became the focus of a a preliminary report on the crash.