AIR India said on Monday (Feb 27) that it plans to fund its US$70 billion order for a record 470 aircraft with internal cash, equity and through sale-and-leasebacks. This comes as the airline seeks to rapidly expand its presence in international markets.

Tata Group-owned Air India said on Feb 14 that it would buy 220 planes from Boeing and 250 from Airbus, a record for an order made by a single carrier.

“So the principal driver (for the plane order) was really recognising the opportunity for Indian aviation, and putting in place the investment in the capacity of the aircraft in order to realise that for India’s benefit,” Air India chief executive officer Campbell Wilson said on Monday.

“We see significant opportunity in long-haul international,” he said, adding that a new order for 70 wide-body planes, combined with the exiting fleet and other leased aircraft, means “a many-fold increase in Air India’s wide-body long-haul fleet, and therefore, capacity”.

Once considered a world-class airline in India, Air India’s image was tarnished in the mid-2000s due to financial troubles, an ageing fleet and poor service.

The airline’s renaissance under the Tata conglomerate, which took control of the previously government-owned carrier last year, aims to capitalise on India’s growing base of fliers, and its large diaspora across the world.

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There is untapped opportunity in direct flights to North America, Wilson said, adding that Air India will also increase the frequency of flights to European destinations, including Frankfurt, Paris and the United Kingdom.

The airline is spending US$400 million on refurbishing and upgrading its planes, especially on long-haul routes, as it looks to compete with bigger rivals such as Emirates.

Air India is inducting 500 cabin crew each month, Wilson said. The airline said last week that it will hire more than 4,200 cabin crew and 900 pilots. REUTERS