Air India will use the $120 million loan from the Japanese company to purchase new aircraft

<p>The Tata Group-owned airline Air India has borrowed USD 120 million from Japanese lender SMBC to buy a wide-body Airbus aircraft, the lender announced on Wednesday.<br />
one official announcement states that the deal helped fund a portion of Air India’s October 2023 delivery of one A350-900 aircraft from Airbus.</p>
<p><img decoding=”async” class=”alignnone wp-image-315249″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new–750×422.jpg” alt=”theindiaprint.com air india will use the 120 million loan from the japanese company to purchase new” width=”1193″ height=”671″ title=”Air India will use the $120 million loan from the Japanese company to purchase new aircraft 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new–750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new–1024×576.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new–768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new–390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new–150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2023/12/theindiaprint.com-air-india-will-use-the-120-million-loan-from-the-japanese-company-to-purchase-new-.jpg 1200w” sizes=”(max-width: 1193px) 100vw, 1193px” /></p>
<p>According to MBC, AI Fleet Services, the GIFT City-based division of Air India, is the borrower in this secured financing transaction, which was made possible via its Singapore office. AI has also given stock to the deal, which is a part of the Tatas’ massive plan to acquire 470 aircraft from Boeing and Airbus.</p>
<p>A reported price for an Airbus A350-900 aircraft is more than $300 million USD. Hiroyuki Mesaki, the national head for India, said, “SMBC Group is pleased to expand upon its long-established relationship with Tata Group through this deal.”<br />
He continued by saying that this is the bank’s first-ever airplane financing leasing deal.</p>
<p>The aircraft was one of the first deliveries in the company’s huge aircraft purchase, which was announced earlier this year, according to Air India’s chief commercial and transformation officer, Nipun Aggarwal.</p>
<p>“This transaction is also a major step in expanding our aircraft financing business through GIFT City, India’s first International Financial Services Centre (IFSC),” Aggarwal said.</p>
<p>According to the SMBC statement, India is now the world’s fifth-largest aviation market. The industry is predicted to develop much more in the future because to factors including the creation of a sizable and expanding middle class that is eager to travel.</p>