New Delhi, India - Air India, now under the ownership of the Tata Group, is gearing up for a massive expansion with a plan to borrow around Rs 18,000 crore ($2.5 billion) from State Bank of India and Bank of Baroda. The debt, which is a continuation of a facility availed last year after the Tatas took over the debt-ridden airline, will be used to refinance existing debt until a long-term strategy is finalized.
In addition to the borrowing, Air India has also made improvements to its on-time performance and standardised its meal and service levels. The airline is reportedly considering a big order from both Boeing and Airbus, further solidifying its plans for expansion.
To add to the excitement, the Tata Group is also merging its joint venture with Singapore Airlines, Vistara, with Air India. As part of the merger, SIA will invest Rs 2,059 crore ($280 million) in Air India and hold a 25.1 percent stake in the airline once the transaction is complete.
Furthermore, AirAsia India is set to merge with Air India Express by November 2023, potentially resulting in the cessation of the AirAsia India brand and leaving Air India Express as the sole low-fare entity for domestic and international flights.
With all these developments, the future looks bright for Air India as it aims to soar to new heights under the guidance of the Tata Group.