Standard Chartered and the Bank of India have jointly financed a $215 million term loan to an Air India subsidiary, AI Fleet Services IFSC Ltd (AIFS), for the financing of six Boeing 777-300ER aircraft. The seven-year financing is part of Air India’s ongoing fleet renewal and expansion plans, which aim to increase its fleet to 570 aircraft. The deal marks the first commercial aircraft finance transaction structured with a GIFT City borrower, highlighting India’s growing role in global aviation financing.
GIFT City, located in Ahmedabad, is emerging as a hub for aviation finance, and this deal underscores its importance. Standard Chartered acted as the structuring bank, while both lenders jointly underwrote the transaction as mandated lead arrangers and bookrunners. The move comes amid India’s aviation boom, with the sector expected to play a pivotal role in economic connectivity and growth.
Air India has embarked on a five-year transformation journey, placing an order for 570 new aircraft, merging sister airlines, and investing in training academies and maintenance facilities. The airline has also announced that it will operate 174 additional weekly flights across domestic and short-haul international routes during the winter schedule, starting on October 26. The expansion is designed to meet the growing travel demand during the winter schedule.
The new routes will enhance connectivity with major Indian cities and popular destinations in Southeast Asia. Internationally, the airline is ramping up operations on high-traffic routes, including flights between Delhi and Kuala Lumpur, and Delhi and Denpasar (Bali). In the domestic sector, Air India is targeting important seasonal and regional routes, including new direct services from Delhi to Jaipur and Jaisalmer.
The airline is also strengthening its network in central India, with increases in daily flights on routes connecting Delhi and Mumbai to Udaipur, Jaipur, and Jodhpur. Additionally, services to Gujarat, such as those from Mumbai to Bhuj and Delhi to Rajkot, are being expanded to operate twice daily. The network expansion comes as Air India’s fleet retrofit programme nears completion, with 26 of the 27 legacy Airbus A320neo aircraft targeted for cabin upgrades already retrofitted with completely redesigned interiors.
The airline currently operates a fleet of 187 aircraft, comprising Airbus and Boeing models, and is investing in both network and product to reposition itself as a world-class carrier. The ongoing transformation agenda aims to enhance the airline’s competitiveness and provide a better experience for its passengers. With the addition of new aircraft and routes, Air India is poised to play a significant role in India’s growing aviation sector.