Air India's CEO Campbell Wilson on Monday said that Air India's order for a record 470 aircraft from Airbus and Boeing will be at a list price of $70 billion.The airline plans to fund the deal with internal cash flow, equity and sale and leaseback, Wilson added. Air India has "enormous" potential and efforts are on to make the group a significant international player," Campbell further added."We have committed to a historic order of new aircraft that will start entering the fleet from the end of this year through the end of the decade, to both transform the fleet and power significant network and capacity expansion," Wilson said.
On the integration of Vistara with Air India Wilson said the process is underway and is now awaiting approval from the Competition Commission of India (CCI).The integration of Air India Express and AIX Connect, earlier known as AirAsia India, is also underway.
Air India has enormous potential and unprecedented opportunities. The group is working on becoming a significant international player, he said.
On February 14, Air India announced placing an order for 470 planes, including 70 wide-body aircraft.
Wilson said the funding would be through a combination of various sources.
Air India had, earlier this month, announced provisional deals for 220 planes from Boeing and 250 from Airbus in an order that would eclipse previous records for an order by a single carrier.
The airline plans to fund the order with a combination of resources, including internal cash flow, shareholder equity and sale-and-leaseback of aircraft, Wilson told reporters at a press conference.Out of the firm order for 470 planes, 250 are from Airbus and 220 from Boeing. "We don't have a timeline... will evaluate the market," Wilson said with respect to exercising the option to purchase another 370 planes.
Meanwhile, Prime Minister Narendra Modi said,"Before 2014, when Air India was discussed, it often used to be for negative news. During the Congres rule, Air India was known for scams, as a loss-incurring business model. Today, Air India is taking a new flight before the world in the form of India's new capability."
Air India's order for 470 jets at list price of $70 billion | Mint - Mint
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