Air India's ambitious fleet renewal and expansion plans, which aim to increase its fleet to 570 aircraft, have received a significant boost with a $215 million term loan. This crucial financing, jointly underwritten by Standard Chartered and the Bank of India as mandated lead arrangers and bookrunners, is directed towards an Air India subsidiary, AI Fleet Services IFSC Ltd (AIFS). AIFS is strategically based in Gujarat International Finance Tec-City (GIFT City) in Ahmedabad, and the seven-year term loan is specifically allocated for the financing of six Boeing 777-300ER aircraft, marking a key step in the airline's ongoing transformation journey under its Vihaan.AI programme.

Sanjay Sharma, Chairman of AIFS and Chief Financial Officer of Air India, underscored the vital role GIFT City is set to play in facilitating the financing of the airline's extensive aircraft orders. He highlighted that this transaction represents the first commercial aircraft finance deal structured with a borrower from GIFT City, signaling the city's emergence as a robust option for aircraft leasing and financing for Indian airlines as the nation's aviation sector continues to advance. Standard Chartered additionally served as the structuring bank for this landmark deal, which further emphasizes India’s growing influence in global aviation financing. GIFT City itself, promoted collaboratively by the Gujarat government and the Union government, stands as India’s first operational greenfield smart city and international financial services centre, perfectly positioned to capitalize on India’s current aviation boom and its pivotal role in economic connectivity and growth.

In parallel with its strategic financial maneuvers and fleet expansion, Air India has also announced a substantial increase in its flight operations for the upcoming winter schedule, introducing 174 additional weekly flights. These flights will be distributed across both domestic and short-haul international routes, commencing on October 26, to effectively meet the escalating travel demand during the peak winter season. On the international front, the airline is significantly ramping up services on high-traffic corridors: flights between Delhi and Kuala Lumpur will increase from seven to ten times a week starting November 15, and services connecting Delhi and Denpasar (Bali) will also be augmented to ten weekly flights, effective December 1.

Domestically, Air India is dedicated to enhancing connectivity to major Indian cities and popular regional and seasonal destinations. New direct services from Delhi will be introduced to Jaipur, operating three times daily, and to Jaisalmer, operating twice daily. To accommodate higher passenger demand during the winter tourism season, frequencies on existing routes linking Delhi and Mumbai to Udaipur, Jaipur, and Jodhpur will be increased. Furthermore, the airline is fortifying its network in central India, with increased daily flights from Delhi to Indore and Bhopal, and from Mumbai to Indore. Connectivity to Gujarat is also being strengthened, with services from Mumbai to Bhuj and Delhi to Rajkot expanding to operate twice daily. Other high-density routes will also see an increase in flight frequency, including Delhi to Varanasi, Raipur, Guwahati, Port Blair, Aurangabad, and Nagpur, and Mumbai to Dehradun, Patna, and Amritsar.

This extensive network expansion strategically coincides with the near completion of Air India's fleet retrofit programme, which was launched in September 2024. Out of the 27 legacy Airbus A320neo aircraft earmarked for cabin upgrades, 26 have already undergone retrofitting with completely redesigned interiors. These upgraded aircraft now boast a modern three-class configuration, featuring Business Class, Premium Economy, and Economy Class, which is designed to significantly enhance the overall passenger experience. Currently operating a diverse fleet of 187 Airbus and Boeing aircraft, Air India's continuous investment in both its network and product offerings unequivocally reflects its ongoing transformation agenda, firmly aimed at repositioning itself as a world-class global carrier.