Air India may soon place order for 500 aircrafts

12 Dec 2022 , 08:16 AM

As it embarks on an ambitious revival under the Tata Group conglomerate, Air India is close to placing historic orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing, according to industry sources who talked to ET on Sunday.

The report stated that as the final touches are being put on the massive deal in the coming days, they stated that the orders include as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s.

Such a transaction might surpass $100 billion at list prices, with any options, and rank among the largest by a single airline in terms of volume, surpassing American Airlines’ combined order for 460 Airbus and Boeing aircraft.

The potential order comes only a few days after Tata announced that Air India and Vistara, a joint venture with Singapore Airlines, would merge to become a larger full-service carrier, strengthening its position in both local and international skies.

Tata now owns a fleet of 218 aircraft, making Air India the largest international airline in the nation and the second-largest domestic carrier behind IndiGo. Air India, which has a maharajah as its mascot, was once renowned for its opulently decorated aircraft and exceptional service, but as financial problems grew in the mid-2000s, its reputation began to tarnish.

Additionally, Air India plans to compete with IndiGo for a larger portion of both the local market and regional foreign travel.

The 500 planes will be delivered over a minimum of ten years and would help Prime Minister Narendra Modi achieve his aim of growing the economy to $5 trillion while replacing and expanding fleets in the aviation industry, which is now growing at the fastest rate in the world.

However, experts caution that a number of obstacles, including weak domestic infrastructure, a lack of pilots, and the danger of fierce competition from established Gulf and other airlines, stand in the way of Air India’s aim to regain a significant worldwide position.

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