Air India is making headlines again, but this time for a blend of bold expansion, passenger care, and a major financial milestone that could reshape India’s aviation landscape. As the Tata Group-owned airline surges ahead with its ambitious five-year transformation plan, the past week has seen a flurry of announcements and operational drama, underscoring both the challenges and the promise of India’s flagship carrier.
On October 21, 2025, Standard Chartered Bank and Bank of India confirmed they have jointly financed a USD 215 million loan to AI Fleet Services IFCS Limited (AIFS), Air India’s leasing arm. The seven-year amortising term loan is earmarked to support the airline’s ongoing fleet renewal and expansion—no small feat for a carrier that has already announced orders for a whopping 570 new aircraft as part of its transformation. According to ch-aviation and Bloomberg, the funds will specifically refinance debts on six Boeing 777-300ERs that Air India acquired from lessor Altavair earlier this year.
But this isn’t just another big loan. What makes this transaction historic is its structure: it is the first commercial aircraft finance deal to be routed through GIFT City (Gujarat International Finance Tec-City), India’s first international financial services centre, strategically situated between Gandhinagar and Ahmedabad. Executives from both banks expressed optimism that the deal reflects growing investor confidence in India’s aviation finance ecosystem—a sentiment that could open the floodgates for future international investment in the sector.
While Air India’s boardrooms were abuzz over financing, its operations team was handling a crisis half a world away. On October 17, 2025, a technical issue with a Boeing 787-8 Dreamliner forced the cancellation of flight AI138 from Milan to Delhi, stranding more than 250 passengers in Milan. The timing couldn’t have been worse: not only was it a busy travel period, but the disruption also coincided with the run-up to Diwali, India’s festival of lights, when families are eager to reunite.
According to IANS and SocialNews.XYZ, Air India moved quickly. By October 19, the airline had arranged a special flight—AI138D—departing Milan at 7:00 p.m. local time and scheduled to land in Delhi on the morning of October 20. In a statement, Air India said, "Air India will operate an additional flight from Milan to Delhi today to accommodate passengers of flight AI138, which was cancelled on 17 October due to a technical issue." The airline also assured the public that passenger safety and comfort remain its top priorities, thanking travelers for their patience and understanding during the ordeal.
But what about those stranded in Milan? Air India says it extended full support, providing hotel accommodation, meals, and the choice between a full refund or complimentary rescheduling. "Air India has extended all immediate assistance to affected passengers, including hotel accommodation and meals. Full refunds or complimentary rescheduling were also offered as per passenger preference," the airline explained. However, due to limited hotel availability near the airport, some passengers were housed farther away—a move that sparked a flurry of social media complaints about the inconvenience. Air India responded, "All affected passengers have been provided hotel accommodation; however, due to limited availability, some rooms were arranged outside the immediate vicinity of the airport." Most travelers were successfully rebooked for flights coinciding with Diwali, ensuring families could celebrate together despite the disruption.
Meanwhile, back in India, Air India is gearing up for a massive operational expansion as part of its Northern Winter Schedule, which kicks off on October 26, 2025. According to a company announcement cited by TTR Weekly, the airline will add 174 weekly flights on key domestic and short-haul international routes, a move designed to meet surging demand and improve connectivity across the region.
On the international front, the airline is boosting its Delhi-Kuala Lumpur service from seven to ten weekly flights starting November 15, and its Delhi-Denpasar (Bali) service from seven to ten weekly flights beginning December 1. These increases are expected to benefit both business and leisure travelers, offering more flexibility and convenience on two of Southeast Asia’s most popular routes.
But the real action is on the domestic front. New seasonal routes launching October 26 include three daily flights between Delhi and Jaipur and two daily flights between Delhi and Jaisalmer. Other frequency increases are spread across Rajasthan, Madhya Pradesh, Gujarat, and beyond. For instance, Delhi-Udaipur will see an increase from two to three daily flights, Mumbai-Jaipur from three to four, and Mumbai-Jodhpur from one to two. The expansion reaches even further with more flights to Indore, Bhopal, Bhuj, Rajkot, Varanasi, Raipur, Port Blair, Aurangabad, Guwahati, Nagpur, Dehradun, Patna, and Amritsar. It’s a dizzying array of new options that could reshape how Indians travel for both business and pleasure.
Part of what’s making this expansion possible is Air India’s nearly completed retrofit program for its legacy Airbus A320neo aircraft. Launched in September 2024 and now wrapping up in October 2025, the program has seen 26 out of 27 legacy A320neo planes upgraded with brand-new cabin interiors, including Business Class, Premium Economy, and Economy Class. In total, Air India now operates more than 100 A320 family aircraft with modern cabins on over 80 domestic and short-haul international routes. The airline says this delivers a "significantly enhanced travel experience," and frequent flyers are likely to agree.
All these moves are part of a broader five-year transformation plan under the Tata Group’s stewardship. Air India’s order for 570 new aircraft is one of the largest in aviation history, and the airline’s leaders have made it clear that they see the future as both global and premium. The recent USD 215 million loan is just one piece of a much larger puzzle, but its structuring through GIFT City signals a new era for how Indian airlines can access international capital markets—potentially lowering costs and increasing flexibility for future fleet investments.
For passengers, the message is clear: Air India is betting big on both comfort and connectivity. Whether responding to emergencies with swift action and customer care, or rolling out a winter schedule packed with new routes and upgraded planes, the airline seems determined to reclaim its place as a leader in Indian and international aviation.
As the Diwali season brings families together and the winter travel rush begins, Air India’s blend of ambition and responsiveness is being put to the test. If recent events are any indication, the airline is more than ready to rise to the occasion, navigating both turbulence and tailwinds as it charts its new course.
