Air India is reportedly in talks to secure a loan of approximately $200 million as part of its ongoing fleet expansion strategy. The funding will support the acquisition of new aircraft aimed at modernizing its fleet and boosting international and domestic connectivity.
According to sources familiar with the matter, the loan will be used to finance advance payments for upcoming aircraft deliveries, including narrow-body and wide-body jets. The airline has been aggressively pursuing growth under its new ownership by Tata Group, which is overseeing a broader transformation of India’s flagship carrier.
Air India is in the midst of executing one of the largest commercial aviation orders in history, having placed an order earlier with Airbus and Boeing for over 470 aircraft. The airline aims to become a globally competitive player, challenging Gulf and Southeast Asian carriers in long-haul markets while also capturing a larger share of the fast-growing Indian aviation market.
A successful loan arrangement will be pivotal to keeping Air India’s fleet modernization on track. Financial institutions both in India and abroad are reportedly being considered as potential lenders.
This latest development underscores the airline’s ambitious turnaround plan and its push to rebuild its reputation after years of underinvestment and operational inefficiencies.
