Cash flow, Tata equity, sale and leaseback options, and other sources of funding will be used by Air India to pay for the aircraft: CEO
The Tata group airline has already begun leasing 36 aircraft, two of which have already been added to its fleet, in addition to placing orders for additional aircraft.
According to Air India's CEO Campbell Wilson, the airline aims to use a combination of three main financing methods over the next few years to pay for its sizable aircraft order: cash flow, stock from parent company Tata Group, and sale and leaseback. to use
The aircraft order is the largest one-time aircraft order in the history of commercial aviation and consists of form orders for 470 aircraft from Airbus and Boeing as well as buy options for an additional 370 aircraft from the two manufacturers.
The jets will be delivered to the airline over a number of years, and Wilson told reporters that the firm order would be about $70 billion at list prices. Wilson added that Air India can and will use available finance sources to pay for the aircraft. He omitted information regarding the precise order size. Manufacturers frequently provide airlines with significant discounts for large orders.
The Tata group airline has already begun leasing 36 aircraft, two of which have already been added to its fleet, in addition to placing orders for additional aircraft. In order to maintain and upgrade its current fleet, particularly the wide-body aircraft used for long-haul and ultra-long-haul flights, it is currently rehabilitating some of its ground vehicles.
Domestic, short-haul international, and long-haul international market dominance for Air India is the goal, according to Wilson.
Wilson cited the North American, European, East Asian, and Southwest Pacific regions as Air India's top foreign growth markets.
He emphasised the potential for expansion in international operations by pointing out that, in comparison to many smaller nations, India has fewer than 50 wide-body aircraft that are now in service. According to him, there is a sizable demand for long-haul travel out of India, and Air India is working to accommodate that demand. He also added that Air India's order will aid in the country's efforts to become a major international transit centre.
There are currently 140 aircraft in the combined Air India and Air India Express fleet, the majority of which are narrow-body models. The airline has ordered 470 aircraft, of which 70 are wide-body aircraft and 400 are single-aisle aircraft. 31 of the ordered aircraft are anticipated to be delivered to Air India this year.
When Air India was returned to the Tata group a year ago, the new owners have concentrated on improving the product offering while strategizing significant airline expansion. In order to maintain the airline's network and fleet on a "path of sustainable development, profitability, and market leadership," a five-year roadmap known as Vihaan.ai was created.
The initiative, according to Wilson, "may represent the biggest revolution in aviation history."
