Air India, is negotiating a $200 million bank loan to acquire a fleet of Boeing 777 aircraft from a US-based leasing company, sources familiar with the matter revealed. 

The airline group, encompassing full-service carrier Air India and low-cost Air India Express, manages aircraft purchases and leases via this entity. Discussions for the loan, which began earlier in 2025, were briefly stalled following the crash of an Air India Boeing 787 Dreamliner in Ahmedabad last month but have since resumed, though terms may still change.

The acquisition aligns with Air India's efforts to expand its fleet amid supply chain delays and challenges in sourcing aircraft from the open market. Since its acquisition by Tata Group in January 2022, Air India has ordered 570 new aircraft from Airbus and Boeing over three years. To accelerate fleet growth, the airline may take delivery of 50 Boeing 737 Max jets originally intended for Chinese carriers.

Currently, Air India operates the six Boeing 777s it aims to purchase, which are 11 to 13 years old and primarily serve India-US routes, according to Flightradar24 data. These acquisitions are critical to maintaining operational capacity until new aircraft deliveries commence. The loan's pricing may be tied to the Secured Overnight Financing Rate, sources noted. 

This strategic move underscores Air India's push to bolster its fleet and enhance connectivity, particularly on long-haul international routes, as it navigates ongoing supply chain constraints in the aviation industry.