Air India is India’s flag carrier airline, with headquarters in New Delhi. Talace Private Limited, a Tata Sons Special-Purpose Vehicle, owns it. According to reports, Air India is considering raising $1 billion in a funding round valued at around $5 billion.

CBD Aviation, a wholly owned Irish subsidiary of China Developmental Bank Financial Leasing Co Limited, made the announcement on the side-lines of the Airline Economics Growth Frontiers Asia Pacific 2022 conference. They signed a lease agreement with Air India for a fleet of six Airbus A320neo aircraft, according to a company statement.

CBD Aviation was among the first aircraft leasing companies to secure Air India’s additional A32neo aircraft order as part of the airline’s newly announced transformation plan following the Tata group’s acquisition of the airline. This is intended to expand the carrier’s domestic and international operations by increasing its fleet.

Also Read: Air India Signs Agreements to Acquire AirAsia India; To Be Merged With Air India Express

“Our commercial team is delighted to have worked closely with Air India to help solve their fleet requirements with these new Airbus narrow body aircraft from our orderbook,” said Ryan Barrett, CDB Aviation’s Asia-Pacific operations president. “These new generation, fuel-efficient aircraft are well suited to support Air India’s fleet rejuvenation initiatives, positioning the airline for long-term growth and profitability.”

Nipun Aggarwal, Air India’s Chief Commercial Officer, stated that the deal will help the airline strengthen its fleet. “It will improve our connectivity, especially on short and medium-distance routes, and represents a significant step forward in our transformation journey,” he said.

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“India is becoming an increasingly important region for CDB Aviation, as it is the second largest Asia Pacific market for new aircraft deliveries, with nearly 1,000 Boeing and Airbus jets on order,” said Peter Goodman, CDB Aviation’s Chief Commercial Officer. “Our commercial team is continuing to expand its reach across Asia Pacific, leveraging our platform’s resources and scale to assist the region’s airlines in restoring networks and expanding fleets.”