Air India is set to place historic orders for as many as 500 jetliners worth tens of billions of dollars from Airbus and Boeing as it carves out an ambitious renaissance under conglomerate Tata Group, industry sources said on Sunday.
Air India is set to place historic orders for as many as 500 jetliners worth tens of billions of dollars from Airbus and Boeing as it carves out an ambitious renaissance under conglomerate Tata Group, industry sources said on Sunday.
The orders include up to 400 narrowbody jets and 100 or more widebody jets, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity then that the finishing touches are being made to the mammoth deal in the coming days. .
Such a deal could top $100 billion at list prices, including all options, and rank among a single airline’s largest by volume, eclipsing a combined order for 460 Airbus and Boeing planes from American. Airlines more than ten years ago. Even after large expected discounts, the deal would be worth tens of billions of dollars and cap a volatile year for an industry whose jets are back in demand after the pandemic but face growing industrial and environmental pressures.
Airbus and Boeing declined to comment. Air India, owned by the Tata group, did not immediately respond to a request for comment.
The potential order comes days after Tata announced Air India’s merger with Vistara, a joint venture with Singapore Airlines, to create a larger full-service carrier and boost its presence in domestic and international skies. The deal gives Tata a fleet of 218 planes, cementing Air India as the country’s largest international carrier and the second-largest domestically after IndiGo leader Air India, with its Maharajah mascot, was once known for its richly decorated aircraft and stellar service, but its reputation waned in the mid-2000s as financial troubles mounted.
Founded by JRD Tata in 1932, Air India was nationalized in 1953. Tata regained control in January and has since worked to revive its reputation as a world-class airline. The planned order reflects a deliberate strategy to win back a solid share of traffic flows to and from India, which are currently dominated by foreign carriers such as Emirates.
Air India also wants to gain a bigger share of regional international traffic and the domestic market, fighting on both fronts with IndiGo.
Delivered over at least a decade, the 500 jets would replace and expand fleets in the world’s fastest growing airline market, while contributing to Prime Minister Narendra Modi’s goal of expanding the economy to 5 trillion dollars.
But experts warn that many hurdles stand in the way of Air India’s ambition to regain a strong global position, including fragile domestic infrastructure, pilot shortages and the threat of stiff competition with established carriers from the Gulf and others.
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