PARIS – Indian airline has firmed up its order for a whopping 470 aircraft from Airbus and Boeing at the Paris air show on Tuesday.
The deal struck by Air India is worth $70 billion according to the list prices and as per a statement released by the carrier which is trying to revitalize itself under new ownership; the bulk of the order would be delivered by mid-2025 onwards.
Owned by Tata, Air India finalized separate purchase agreements with Airbus and Boeing, solidifying its plans for fleet expansion and service enhancement. The deal comes after a major purchase deal made by domestic competitor IndiGo, which committed to buying 500 single-aisle planes from Airbus.
The order includes a diverse range of aircraft types including 34 A350-1000s, six A350-900s, 140 A320neo, and 70 A321neo narrowbody aircraft. On the Boeing side, Air India will receive 20 787 Dreamliners, 10 777Xs, and 190 737 MAX narrowbody planes. Additionally, the airline has secured options to purchase an additional 70 aircraft from Boeing, comprising 50 737 MAXs and 20 787 Dreamliners, marking Boeing’s largest order in South Asia.
Air India is eyeing to capture the market dominated by middle-class Indians and is putting in efforts to expand its operations and modernise its fleet. The airline’s owner firm, Tata is also challenging its rival IndiGo on multiple fronts.
Air India’s Chief Executive, Campbell Wilson, expressed confidence in the airline’s ambitious fleet renewal and expansion program, which aims to introduce advanced and fuel-efficient aircraft across its route network within the next five years.
On the other hand, Christian Scherer, Chief Commercial Officer and Head of International at Airbus, said they were excited to be a key partner in the reinvention of the Flying Maharaja.
‘Under the leadership of the Tata Group and a focussed new management, this is one of the most ambitious projects in the airline business today,’ he said.
Asia in general and India in particular has seen a rising demand for air travel fuelled by host of factors including the growth of the middle class that now prefers air travel for leisure and work.
Tata Sons had taken over the debt-ridden airline last year and the group seems to signal recovery of the carrier with the latest deal that has sent thunderbolt through the aviation world.
Meanwhile, when it comes to volume, Airbus is also a reputed name and is a leader in designing, manufacturing, and delivering aerospace products, services, and solutions. The firm boasts around 130,000 employees who deliver services to the global community.
