Air India is accelerating plans to modernise and expand its fleet, entering advanced negotiations with Airbus and Boeing to potentially acquire up to 300 aircraft. The initiative forms a crucial part of the airline’s global expansion strategy and aims to strengthen its international and domestic network.
Scope of the Aircraft Deal
- Narrow-body jets: Potential acquisition of 200 aircraft
- Wide-body aircraft: Discussions for 80–100 additional planes, adding to previous talks on 25–30 wide-body jets
- The deal complements Air India’s 2023 order of 470 aircraft, reflecting a long-term vision for fleet modernisation and growth
Strategic Context
The discussions follow the tragic Boeing 787 crash in Ahmedabad in June, which claimed 260 lives. The airline is now focused on rebuilding its image, improving operational efficiency, and expanding global connectivity.
By investing in a modern, technologically advanced fleet, Air India aims to position itself as a globally competitive and customer-centric carrier, capable of handling long-haul operations alongside its domestic network.
Financial Support for Fleet Expansion
Air India’s leasing subsidiary, AI Fleet Services IFSC Limited (AIFS), secured a $215 million loan from Standard Chartered and Bank of India. This seven-year amortising facility will finance six Boeing 777-300ER aircraft, which will be leased back to the airline.
This financing milestone highlights GIFT City’s emergence as an aviation finance hub and provides the necessary capital to accelerate fleet scaling.
Vision Ahead
The 300-aircraft procurement forms part of Air India’s five-year transformation and rebranding programme, aimed at ensuring world-class safety standards, operational efficiency, and enhanced passenger experience.
With this move, Air India is laying the foundation for a new global avatar, modernising its fleet, and expanding its reach across international and domestic markets.
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