Air India to Mark the Highest number of Jet Purchases with 500 Jets
Air India to register record order
According to industry sources, Air India is on the approach of clinching big contracts worth tens of billions of dollars from Airbus and Boeing as it embarks on an ambitious resurrection under the Tata Group company.
Air India’s orders include up to 400 narrow-body planes and 100 or more wide-body planes, including dozens of Airbus A350s and Boeing 787s and 777s, due to an increase in the number of passengers booking cheap international flight tickets from India. They requested anonymity since the large deal is still being completed.
The cost of this deal
Such a contract might approach $100 billion at list prices, including any options, and rank among the greatest by a single airline in terms of volume, dwarfing American Airlines’ combined orders of 460 Airbus and Boeing jets over a decade ago – notable flights to India from USA airlines for NRI.
Even with large expected reductions, the acquisition would be worth tens of billions of dollars, capping a challenging year for aviation titans whose planes are once again in demand as a result of the epidemic, but who are also dealing with rising industrial and environmental issues.
It would also allow Airbus to find a home for certain A350 manufacturing slots that were originally planned for Russia’s Aeroflot but are now available due to war-related restrictions imposed on Moscow.
Both Airbus and Boeing refused to comment. The Tata Group’s Air India did not respond to a request for comment.
China delivered its first C919 airliner last week, but experts believe it is at least a decade away from competing on such a large scale.
The prospective mega-order comes just days after Tata announced the merger of Air India and Vistara, a joint venture with Singapore Airlines, to establish a larger full-service carrier with a more substantial footprint in local and international skies.
This record agreement would make Tata a fleet of 218 aircraft, establishing Air India as the nation’s largest international air carrier and the country’s second-largest domestic carrier behind IndiGo.
Purchasing a debt-ridden property Tata has also secured critical flying rights and landing slots with Air India, notably to destinations in the United States and Europe.
From Rags to Riches journey
The Maharajah Mascot of Air India was once linked with lavishly adorned planes and exceptional service, but its image deteriorated in the mid-2000s as financial difficulties increased.
JRD Tata laid the foundation of Air India in 1932, and it was nationalized in 1953. Tata took ownership in January and has since sought to reestablish the airline as a world-class carrier.
The order represents a desire to reclaim a significant part of travel between India’s massive overseas diaspora and cities such as Delhi and Mumbai, which are now dominated by international competitors such as Emirates.
Air India also aims to grow its share of regional foreign traffic and the local market, setting up a competition with IndiGo on two fronts.
The 500 planes, which will be delivered over the next decade, will replace and increase fleets in the world’s fastest-growing air transport sector, while also helping Prime Minister Narendra Modi achieve his aim of boosting the economy to $5 trillion.
Experts caution that several obstacles remain in the way of Air India’s goal to reclaim a significant worldwide position, including aging domestic infrastructure, pilot shortages, and the potential of stiff competition from established Gulf and other airlines.
It may also face delays in receiving the medium-haul Airbus A321neos bought for the Air India-Vistara alliance, since the European planemaker is now sold out until 2028 or later.
