Air India to fund US$70b plane order with cash and equity
NEW DELHI: Air India said yesterday it plans to fund its US$70 billion (RM313.4 billion) order for a record 470 aircraft with internal cash, equity and through sale-and-leasebacks, as the airline seeks to rapidly expand its presence in international markets.
Tata Group-owned Air India said on Feb 14 it would buy 220 planes from Boeing and 250 from Airbus in a deal that has eclipsed previous records for an order made by a single carrier.
“So the principal driver (for the plane order) was really recognising the opportunity for Indian aviation and putting in place the investment in the capacity of the aircraft in order to realise that for India’s benefit,” Air India CEO Campbell Wilson said yesterday.
“We see significant opportunity in long-haul international,” he said, adding that a new order for 70 widebody planes combined with its exiting fleet and other leased aircraft means “a many-fold increase in Air India’s widebody long-haul fleet, and therefore, capacity”.
Air India, once considered a world-class airline in India, saw its image tarnish in the mid-2000s due to financial troubles, an ageing fleet and poor service.
The airline’s renaissance under the Tata conglomerate, which took control of the previously government-owned carrier last year, aims to capitalise on India’s growing base of fliers and large diaspora across the world. – Reuters
NEW DELHI: Air India said yesterday it plans to fund its US$70 billion (RM313.4 billion) order for a record 470 aircraft with internal cash, equity and through sale-and-leasebacks, as the airline seeks to rapidly expand its presence in international markets.
Tata Group-owned Air India said on Feb 14 it would buy 220 planes from Boeing and 250 from Airbus in a deal that has eclipsed previous records for an order made by a single carrier.
“So the principal driver (for the plane order) was really recognising the opportunity for Indian aviation and putting in place the investment in the capacity of the aircraft in order to realise that for India’s benefit,” Air India CEO Campbell Wilson said yesterday.
“We see significant opportunity in long-haul international,” he said, adding that a new order for 70 widebody planes combined with its exiting fleet and other leased aircraft means “a many-fold increase in Air India’s widebody long-haul fleet, and therefore, capacity”.
Air India, once considered a world-class airline in India, saw its image tarnish in the mid-2000s due to financial troubles, an ageing fleet and poor service.
The airline’s renaissance under the Tata conglomerate, which took control of the previously government-owned carrier last year, aims to capitalise on India’s growing base of fliers and large diaspora across the world. – Reuters
