Air India (AI, Delhi International) is in talks with a syndicate of banks to borrow approximately INR30 billion Indian rupees (USD361.6 million) to meet upcoming aircraft order payments, according to the Business Standard newspaper.
The outlet, citing an unnamed State Bank of India executive, said talks were underway with multiple lenders and relate to the order for 470 aircraft placed by Air India in February. Again citing unnamed sources, the report says the airline intends to purchase outright the 70 widebodies included in the order, which includes planes from both Boeing and Airbus, while planning to secure the 300 narrowbodies on a sale/lease-back basis.
In June, Chief Financial Officer Vinod Hejmadi told journalists that the carrier had made a pre-delivery payment to Boeing for the 220 aircraft from that manufacturer. That money came via a loan also arranged with a syndicate of several banks. At the time, Hejmadi noted the airline's short time frame to raise the money.
Formerly state-owned, Air India was acquired by Tata Sons in early 2022 via its subsidiary, Talace Private Limited. The airline has since embarked on a significant expansion and upgrade program. Despite flagging a loss of approximately INR140 billion (USD1.7 billion) for FY2022/23, Air India remains one of the few major Indian carriers lenders are lining up to do business with. Indian ratings agency CRISIL has Air India on a AAA/Stable rating, based mainly on a INR375 billion (USD4.5 billion) bank credit facility.
