Air India gave investors in BoeingBA +1.87% and Airbus a Valentines Day present so big that politicians on three continents took notice. Tuesday, Boeing (ticker: BA) announced an order for up to 290 jets from Air India, including 777, 737 and 787 model jets, while the airline said it is buying about 250 planes from AirbusAIR +0.33% (AIR.France). “This acquisition of nearly 300, highly advanced Boeing jets is a core element of Vihaan.AI, the comprehensive transformation and growth strategy we are pursuing at Air India,” said Air India CEO Campbell Wilson in a news release.

As the fastest-growing Airport in the world, the busiest Airport in South India and the third largest in the Country, the BLR Airport welcomed 33.3 million passengers in FY 2018-19.

In June 2019, Fairfax India created a 100% owned subsidiary in India named Anchorage Infrastructure Investments Holdings (Anchorage). It is intended that this company will be Fairfax India’s flagship investment vehicle for airports and other infrastructure investments in India and that all the shares it owns in Bangalore International Airport (BIAL) will eventually be transferred to Anchorage.In September 2021, Fairfax India, as previously agreed, transferred 43.6% out of the 54% that it owns in BIAL to Anchorage and OMERS (the pension plan for municipal employees in the province of Ontario, Canada) invested $129.2 million to acquire from Fairfax India an 11.5% interest on a fully diluted basis in Anchorage. This resulted in OMERS indirectly owning approximately 5% of BIAL. This transaction values 100% of BIAL at $2.6 billion.Fairfax India intends to complete an IPO of Anchorage that values 100% of the underlying shares of BIAL at a valuation of at least $2.9 billion (a valuation of $1.3 billion for 100% of Anchorage). A “ratchet” mechanism has been agreed with OMERS whereby if the IPO is completed at a valuation below $1.2 billion, OMERS will receive incremental shares of Anchorage to compensate for the difference between the actual IPO valuation and $1.2 billion.BIAL is a highly profitable airport in Bangalore, India and is a sought-after asset. The marketability of BIAL to large pension funds and strategic global airport operators, even as an unlisted company, is very high. This is supported by several recent examples of stake sales and privatisations of airport assets in India. A public listing of Anchorage will help in bringing to light the true value of BIAL. We believe that it could be much higher than $2.9 billion.Once Anchorage is listed, the proportion of the publicly listed investments in Fairfax India will increase from the current 42.5% to 83.5% of the overall portfolio.