Air India’s Bold Expansion: Secures $200 Million Loan to Acquire Boeing 777 Fleet
With a calculated move to strengthen its fleet, Air India is reaching new heights. The airline is looking for a $200 million bank loan to buy six Boeing 777 aircraft from a US-based leasing company. In the midst of global supply chain challenges, this bold move, as reported by The Economic Times and Business Standard on July 22, 2025, intends to bolster the airline’s long-haul operations, especially on highly sought-after India-US routes. What does this expansion mean for India’s aviation landscape and its aspirations for global prominence as the carrier owned by the Tata Group strives for world-class status?
The loan is intended for the purchase of Boeing 777s that are currently in service within Air India’s fleet and is made possible by AI Fleet Services IFSC Ltd., a subsidiary registered in GIFT City. These 11- to 13-year-old wide-body jets are essential for preserving capacity until new aircraft deliveries arrive. They mainly fly on routes like Delhi to New York and Mumbai to Chicago , based on data from Flightradar24. According to Bloomberg, the action was taken as Air India struggles with delayed deliveries from Boeing and Airbus, a problem made worse by a June 2025 Boeing 787 Dreamliner crash in Ahmedabad that momentarily put a halt to loan negotiations. According to Jetline Marvel, the loan’s pricing, which may be based on the Secured Overnight Financing Rate (SOFR), indicates a calculated financial move to lower leasing costs and improve asset ownership now that talks have resumed.
According to Aviation A2Z, Air India has actively pursued modernization since the Tata Group’s 2022 acquisition, ordering 570 aircraft from Airbus and Boeing, including 190 Boeing 737 MAX, 20 Boeing 787-9, and 10 Boeing 777X aircraft. Despite obstacles like supply chain interruptions and the Ahmedabad incident, Chairman N. Chandrasekaran’s goal to make Air India a global leader is exemplified by this $200 million loan. According to News18, the airline’s proactive inspections of its Boeing fleet, which were finished by July 12, 2025, revealed no anomalies, reaffirming its dedication to safety.
For Air India, this expansion is revolutionary since it will improve its capacity to handle the growing demand for travel while overcoming international aviation obstacles. Will this investment help the airline take the lead on long-haul flights, or might unanticipated obstacles stifle its plans? The future of aviation in the country is at stake as Air India places a significant wager on its Boeing 777s. For more information on this exciting journey, stay tuned.
