New Delhi: The Tata Group-owned Air India’s CEO Campbell Wilson on Monday said the airline is investing USD 70 billion (Rs. 5,79,399 crore) for acquiring 470 aircraft from America’s Boeing and France’s Airbus.
This is seen as the world’s single-largest purchase order, ever, in civil aviation history.
Addressing a virtual conference, he also said the process of integration of another Tata airline, Vistara, with Air India, is underway and awaiting approval from regulatory bodies.
He said Air India plans to fund its massive acquisition with a combination of many resources, including internal cash flow, shareholder equity, and sale-and-leaseback of aircraft.
New aircraft will start joining the fleet by December 2023 and continue until the end of the decade. It will transform the fleet and power significant network and capacity expansion.
On February 14, Air India announced the acquisition of 470 planes, including 70 wide-body aircraft. A total of 220 of these will be bought from Boeing and 250 from Airbus. The airline also has the option to purchase another 370 planes in the next few years.
Air India, Wilson said, has enormous potential, and efforts are on to make the group a significant international player.
About Vistara’s integration with Air India, he said, it would comprise three stages: clearance from the Competition Commission of India (CCI), the DGCA’s regulatory aviation perspective, and the merger of the two airlines.
“We are in the first phase, seeking competition clearance,” he added.
(VP)