The Tata group-owned Air India has secured Rs 14,000 crore in funding from State Bank of India and Bank of Baroda in a mix of fresh loans and refinance of existing debt, Mint reported citing two people aware of the development.

The funding comprised ₹12,500 crore to refinance existing loans and ₹1,500 crore secured through the Emergency Credit Line Guarantee Scheme. ECLGS was rolled out in 2020 to support small businesses amid the economic crisis triggered by COVID-19, and was later extended to 26 other pandemic-hit sectors.

The funding will also support the payout of over Rs 200 crore as severance to 2,000 employees under the voluntary retirement scheme. The airline is offering this new round to permanent general cadre officers, aged 40 and above, with at least five years of continuous service at the airline.

Since its acquisition by the Tata conglomerate in October 2021 for Rs 18,000 crore, the airline has been looking at expanding and strengthening its foothold in both domestic and international markets and the funding is set to support these efforts.

In December 2022, Air India rounded up a total of 30 aircraft—21 Airbus A320neos, 4 Airbus A321neos and 5 Boeing B777-200LRs—to add to its fleet as a part of its lease plan. Additionally, earlier this year, it placed a record order for 470 aircraft—220 planes from Boeing and 250 from Airbus.

The group also announced the merger of its two full service airlines—Vistara and Air India—which will result in a combined fleet of 220 aircraft. The order of new aircraft will top this up, accelerating expansion plans.