Air India looks to buy 6 Boeing 777-300ER off lease to manage new aircraft delivery delays
July 22, 2025
Air India is reportedly seeking a $200 million loan to purchase six Boeing 777-300ER aircraft from a US-based leasing firm.
The Economic Times reports that the loan is being sought by AI Fleet Services IFSC Ltd., the aircraft‑leasing subsidiary of Air India based in GIFT City, Gujarat.
Discussions around the deal began earlier in 2025, but were paused in June following the tragic Air India Boeing 787 crash.
With talks resumed, Air India is hopeful of locking in the 777s to mitigate the impact of delivery delays of its new aircraft. The final terms of the deal remain under negotiation.
Is Air India buying the ex-Etihad Boeing 777s?
Although it’s not confirmed which Boeing 777s are under discussion, sources told the Economic Times that all six are already in Air India’s fleet.
The aircraft being sold are said to be between 11 and 13 years old, and mainly operate the airline’s India-USA routes.
Air India took delivery of six ex-Etihad Boeing 777-300ERs between June 2023 and February 2024, giving the airline a short-term capacity boost. It retained the high-quality Etihad interior, with eight first class, 40 business and 280 economy seats.
It was an aircraft I was looking forward to experience for quite a while.
— Aerowanderer (@aerowanderer) October 3, 2023
Here are pictures📸 from onboard Air India B777-300ER registered as VT-ALM, an aircraft in need of a cabin overhaul, from Delhi to Mumbai.#aerowanderer #aviation #avgeek #airindia #b777 #mumbai #delhi pic.twitter.com/i0xTsBQptI
These 777s have been operating Air India’s long-haul routes, almost exclusively on Mumbai to New York and London. The youngest is VT-AER at 11.7 years old, while the eldest is VT-AEM at 13.1 years.
Data from Planespotters indicates the leases for these six aircraft should’ve expired in May 2025, suggesting it is these six that Air India is hoping to purchase outright.
Delayed deliveries create a 777-shaped capacity gap
Since its privatisation and brand refresh, Air India has been on a mission to revamp the passenger experience for the 21st century. But its vision of improved cabins and new aircraft hasn’t been realised, as supply chain issues saw widespread project delays.
Work on the Boeing 777 and 787 cabins has been repeatedly pushed back as four out of five seat suppliers are behind schedule. The first Dreamliner overhaul eventually began in April 2025, but the full cabin rework is unlikely to be complete before 2027.
Here are the 1st cabin photos of @airindia's B777-300ER VT-ALJ which underwent a heavy refresh in Singapore and is enroute Delhi.
— VT-VLO (@Vinamralongani) May 23, 2025
The new seat covers, carpet and a deep clean are an interim fix until the full retrofit. VT-ALS has ferried to Singapore for its refresh.#AvGeek pic.twitter.com/PXmkHkLM4J
Air India has ordered a massive number of aircraft, starting with one of the industry’s largest single orders in February 2023. It added another 100-unit Airbus order in December that year, to give it a backlog of 570 new aircraft.
But the shortages of engines, seats, fuselage components and even raw materials have seen the delivery wait for new aircraft balloon. Reuters reported in March that Air India was being forced to operate older jets for longer.
“There is not a lot we can do,” Air India CEO Campbell Wilson says. “We are victims of circumstance, as is every other airline.”
With the Boeing 777s coming to the end of their short lease period, Air India sees an opportunity to mitigate its capacity risk by keeping the jets in its fleet. Owning the aircraft means all guesswork is removed, keeping those important long-haul routes flowing while it awaits deliveries from Boeing and Airbus.
