Air India, the flag carrier airline of India, is in discussions with Airbus and Boeing for a potential order of up to 300 aircraft, including 80 to 100 new wide-body jets. This represents an increase from previous talks involving 230 aircraft. Alongside these procurement discussions, the airline has announced a significant expansion of its flight network, introducing 174 new weekly flights for both domestic and international short-haul routes. This expansion is set to commence with the Northern Winter Schedule beginning October 26, 2025.

International Route Enhancements

Air India is boosting its international connectivity with increased frequencies on key routes:

Domestic Expansion

The airline is introducing seasonal flights on several domestic routes:

• Delhi-Jaipur (New)
• Delhi-Jaisalmer (New)
• Delhi-Udaipur
• Mumbai-Jaipur
• Mumbai-Udaipur
• Mumbai-Jodhpur

Additionally, Air India will increase flight frequencies from Mumbai and Delhi to several cities starting October 26, 2025:

• Bhopal
• Indore
• Bhuj
• Rajkot

Increased Frequencies on Popular Routes

Air India is also enhancing its service on multiple existing routes:

• Delhi-Varanasi
• Delhi-Raipur
• Delhi-Port Blair
• Mumbai-Dehradun
• Mumbai-Patna
• Mumbai-Amritsar

Air India Express at Navi Mumbai International Airport

As part of the Air India Group's expansion, Air India Express will commence operations from the new Navi Mumbai International Airport:

This significant expansion by Air India demonstrates the airline's commitment to enhancing both domestic and international connectivity. The introduction of new routes and increased frequencies on existing ones is likely to benefit travelers with more options and improved connectivity. The phased expansion at Navi Mumbai International Airport also indicates Air India's strategic focus on capturing market share in this new aviation hub.

The ongoing discussions for a large aircraft order further underscore Air India's ambitious growth plans and its intention to modernize and expand its fleet to meet increasing demand and compete effectively in the global aviation market.

Air India, the flag carrier airline of India, has successfully raised approximately $215 million through a strategic loan arrangement, marking a significant move in its financial operations. This development comes as part of the airline's efforts to optimize its debt structure and support its fleet expansion plans.

Loan Details

Key Highlights

• First for Bank of India: This deal marks the first time Bank of India has served as a mandated lead manager for a loan deal from GIFT City, showcasing the expanding role of Indian banks in international finance structures.

• Strategic Refinancing: The loan proceeds will be used to refinance shorter-term debt that Air India had previously used to acquire six Boeing 777-300ER aircraft. This refinancing strategy could potentially lead to more favorable terms and improved financial flexibility for the airline.

• GIFT City Utilization: The structuring of the loan through Gujarat International Finance-Tec City (GIFT City) highlights the growing importance of this international financial services center in facilitating cross-border financial transactions.

Challenges and Context

The fundraising process for this loan reportedly faced some hurdles, with the process slowing down following an Air India plane crash in June. Despite this setback, the successful completion of the loan deal demonstrates the resilience of Air India's financial strategy and the confidence of lenders in the airline's long-term prospects.

This financial move by Air India comes at a time when the global aviation industry is navigating through various challenges, including recovering from the impacts of the COVID-19 pandemic and dealing with fluctuating fuel prices. The successful securing of this loan indicates Air India's proactive approach to managing its financial resources and supporting its operational needs.

As Air India continues its journey of transformation and expansion, such financial maneuvers will likely play a crucial role in shaping the airline's future trajectory in the competitive global aviation market.