The CEO of Air India (AI, Delhi International) says he will fund his recent record breaking aircraft order using a combination of cash, equity, and sale and lease-backs. The order for 470 aircraft comes with a price tag of up to USD70 billion.
According to Reuters, CEO Campbell Wilson said earlier this week that the order was an acknowledgement of India's aviation potential. He said Air India's owners, Tata Sons, was investing in capacity to maximise that potential. Boeing, which secured an order for 220 aircraft in the deal, expects India to be the world's fastest growing aviation market through to 2040, with an annual growth rate averaging 7%.
While outlets are quoting list prices for the order, neither Wilson nor Boeing and Airbus have provided specific detail on the price to be paid, but Wilson says Air India "can and will" use all available funding sources. The CEO added that he wants to make Air India a market leader across domestic, short-haul international, and long haul international sectors. In addition to the new aircraft, the airline is spending USD400 million upgrading and refurbishing its existing fleet of 115 aircraft.
However, Wilson said he sees particular potential for expanding Air India's long-haul international network. Beyond short-haul international flights around the South Asia region, Air India currently serves multiple long-haul destinations in North America, Europe, East Asia, and Australia. Seventy aircraft in the 470 strong order are widebodies, including twenty B787-9s, ten B777-9s, thirty-four A350-1000s, and six A350-900s. Wilson said they will add "a many-fold increase in Air India's widebody long-haul fleet, and therefore, capacity."
