Air India, the airline subsidiary owned by the Tata Group, has reportedly signed deals with both Airbus and Boeing for the purchase of around 250 and 200 planes, respectively, news agency PTI reported.
The PTI report quoted a source familiar with the matter as saying that the agreement with Airbus, for around 250 aircraft, is expected to be announced next week and will likely include 40 Airbus A350 wide-body planes, making Air India the first Indian carrier to operate this type of aircraft. The airline has signed a deal with Boeing for about 200 planes, the PTI source added.
This comes after Air India's CEO, Campbell Wilson, stated in late January that the airline was in the process of finalizing a significant order of new planes.
This expansion of Air India's operations and fleet is a major move, as the last time the airline acquired new aircraft was over 16 years ago in 2005. In that order, the airline purchased 111 planes, 68 from Boeing and 43 from Airbus, in a deal worth $10.8 billion. This recent deal with Airbus is expected to bring Air India back into the market for new aircraft and make it a major player in the industry once again.
Also read | Enlarged Air India Group continues progressive network optimisation
According to aviation consultancy CAPA, Indian carriers are expected to place orders for up to 1,700 planes by 2024, and Air India's 500-plane order could set the stage for further growth in the industry. Currently, Indian carriers only operate less than 50 wide-body aircraft, which is a small number for such a large market. In contrast, other airlines such as Emirates have a fleet of over 260 wide-body aircraft.
Recently, IndiGo has also made a push into wide-body operations with the introduction of a wet-leased B777 and plans to add two more of these planes to their fleet. This increased demand for larger aircraft shows the growing potential of the Indian market and highlights the importance of Air India's recent purchases. With its orders from both Airbus and Boeing, the airline is poised to make a significant impact on the Indian aviation industry.
