Banks Provide $215M Financing for Air India’s Boeing 777 Fleet

Standard Chartered Bank and Bank of India have confirmed a USD215 million loan facility for AI Fleet Services IFCS Limited, the leasing arm of Air India. The seven-year amortising loan will support Air India’s fleet renewal and expansion plans as part of its ongoing transformation strategy under the Tata Group. The airline has committed to a major fleet overhaul, including orders for 570 new aircraft.

The funds will be used to refinance six Boeing 777-300ER aircraft that Air India acquired earlier this year from lessor Altavair. In July, reports indicated the airline was seeking approximately USD200 million in financing for the purchase. The final structured loan package slightly exceeds that figure, ensuring coverage of acquisition and associated financing costs.

This transaction marks the first commercial aircraft financing deal structured through GIFT City, India’s international financial services hub located in Gujarat. Executives from both lending banks said the deal demonstrates strengthening financial capability and investor confidence within India’s aviation finance sector. They noted that GIFT City is positioned to support more global-standard leasing and aircraft finance transactions in the coming years.

Air India continues to renew its widebody fleet to enhance international service quality and improve operational efficiency. The Boeing 777-300ERs play a key role in the carrier’s long-haul network, particularly routes to Europe and North America. The financing supports broader efforts to streamline the fleet, modernise cabins, and elevate the airline’s competitive position in global markets.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com