Air India CEO Campbell Wilson announced on Monday in a press conference that the list price of its mega deal with Airbus and Boeing was $ 70 billion. Wilson also disclosed how the airline plans on financing its purchase.
The CEO explained that the airline plans on financing the deal via a combination of resources. He said, "The airline plans to fund the deal with internal cash flow, equity, and the sale and leaseback of aircraft."
Air India announced earlier this month that it would be adding 470 aircraft to its existing fleet. The airline explained that of the 470 aircraft, 220 aircraft would be bought from Boeing and 250 planes would be bought from Airbus. This order is considered the biggest single order purchase by an aircraft.
Furthermore, Air India Chief Commercial and Transformation Officer Nipun Aggarwal announced in a now deleted LinkedIn post that the deal with the aircraft manufacturers includes 370 options apart from an order of 470 planes. This means the airline can purchase 370 additional planes at the same price at which it bought the first set of 470 planes.
The airline currently has around 140 aircraft in its fleet, many of which are on lease.
Along with expansion plans for its fleet, the airline also has plans to expand its workforce. Last week Air India announced that it would be hiring over 5000 pilots and cabin crew members in the year 2023. Furthermore, the CEO also hinted at workforce expansion plans in the press conference held on Monday.
He said, "We are adding 500 cabin crew members every month."
Business Today had previously reported that Air India's mega deal would lead to a flurry of jobs in the aviation sector. As per experts Business Today spoke to, over 2,00,000 jobs would be created in the aviation sector in the next few years.
Also Read: Air India mega deal with Airbus and Boeing for list price of $70 billion - BusinessToday