Tuesday, July 9, 2024
HomeTop Global NewsIndustriesAir India megadeal worth over 5.8 Lakh Crores ($70 Billion).

Air India megadeal worth over 5.8 Lakh Crores ($70 Billion).

According to CEO Campbell Wilson, the massive purchase of 470 narrow and wide-body Airbus and Boeing aircraft by Air India will cost $70 billion (about Rs. 5.8 lakh crore at the current dollar-rupee rate). The focus this year will be on hiring and expansion, among other things, according to Wilson. He added that the first year of the takeover was spent making investments into the airline. In the upcoming weeks, issues including the need to hire 500 cabin crew members each month and the pilot and crew shortage will also be addressed. In order to grow, Air India is considering long-haul foreign routes.

Air India’s deals with Boeing and Airbus:

Air India had earlier this month disclosed tentative agreements for 220 aeroplanes from Boeing and 250 aeroplanes from Airbus. Wilson indicated that a combination of funds, including internal cash flow, shareholder equity, and the sale and leaseback of aircraft. Will be used to pay for the purchase. To modernise the fleet and support a sizable network and capacity expansion. He added, “We have committed to a historic order of new aircraft that will start entering the fleet from the end of this year until the end of the decade.”

If Air India decides to purchase an additional 370 aircraft. Further bringing the total deal size to 840 aircraft, the deal size may even grow further. Reports state that a sizable number of deliveries, spread out over ten years, are slated to start in the middle of 2025.

Tata Group working on consolidating Vistara and Air India:

In November of last year, Tata Group announced that its airlines Vistara and Air India would be combined. According to the company website, this move would make it a “leading domestic and international carrier with a combined fleet of 218 aircraft. Thus, making it India’s largest international carrier and second largest domestic carrier.” The company recently announced that it will hire more than 4,200 cabin crew members. 900 pilots, including 500 new hires every month to be hired. Wilson continued, “Air India has arguably begun the largest shift in aviation history.\

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