Aided by Tata credit profile, Air India may find it cheaper to buy widebody jets

The Tata-owned carrier on Tuesday announced a 470 aircraft acquisition programme, the single largest order, by numbers, in the history of the aviation sector. This includes 70 wide bodies, involving a mix of A350s, B-787 and B-777-9. While sale and leaseback has been the preferred mode of acquisition in India, an increase in lease rentals, because of tight aircraft supply, rising demand and interest rates, has made Air India interested in owning a portion of the fleet, said industry executives. Airline will take a final call near the time of delivery.

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