NEW DELHI, INDIA — Tata Group's Air India completes "Pre-Delivery Payment" to Boeing for massive aircraft order.

Air India, owned by Tata Group, has made a pre-delivery payment (PDP) to Boeing for the 220 aircraft it has ordered, according to a message to employees from the airline's chief financial officer, Vinod Hejmadi, on Friday. The PDP is an installment that an airline has to pay the manufacturer as part of the aircraft purchase agreement, generally representing a percentage of the total deal value. Air India's order, valued at $34 billion, was placed with Boeing for 220 aircraft.

"I am delighted to inform you that on Thursday, Air India made the pre-delivery payment to Boeing for the aircraft deal. This transaction represents the largest in Air India's history. The necessary funds were sourced from multiple banks at a very competitive rate and converted to US dollars at optimal rates. We had a limited period to arrange these funds," said Hejmadi.

Air India's order from Boeing comprises the purchase of 190 737 MAX aircraft, 20 787s, and 10 777Xs, with the agreement also providing options for Air India to acquire additional aircraft. Air India's CEO & Managing Director, Campbell Wilson, praised the airline's commercial, strategic procurement, finance, treasury, and legal teams in his weekly message to employees for efficiently securing the significant financing deal for the new fleet in an impressively short span.

"I won't delve into specifics, but it was another monumental accomplishment for the new Air India," said Wilson. He added that the airline's teams were currently in Hamburg, Germany, at the Aircraft Interiors Expo, exploring the most recent and advanced seats, inflight entertainment, and equipment options for their expansive new aircraft fleet.

"Designing customized seats involves long lead-times, often spanning years, so reaching our ultimate goal will be a gradual process. However, after joining the team for a day, I am genuinely excited about what we will eventually be able to offer our customers," Wilson added.