edited by: Namit Singh Sengar
Last Update: February 16, 2023, 11:17 IST
Air India’s biggest ever deal in aviation history for 470 jets is worth $115 billion. (file photo)
According to Air India, the first of the new aircraft will enter service in late 2023 and the majority of aircraft are due from mid-2025.
Air India confirmed that in addition to the 470 aircraft, the deal has an option to buy 370 aircraft (under options and purchase rights to be acquired from Airbus and Boeing), which would take the deal volume to 840 aircraft.
Air India has an option to buy additional 370 aircraft as part of its deal with Airbus SE and Boeing Co aircraft, said Nipun Agarwal, the airline’s chief commercial and transformation officer.
The total order now stands at 840 aircraft, with firm orders for 470 aircraft including 250 aircraft from Airbus and 220 jets from Boeing. A firm order indicates confirmation whereas an option does not indicate confirmation and thus, an airline may choose not to exercise the option.
“This is indeed a historic moment in the history of Air India and Indian aviation. The order for 840 aircraft is the culmination of an exciting journey that began with the privatization process of Air India nearly two years ago, Agarwal said in a LinkedIn post.
“The order includes 470 firm aircraft, 370 options and purchase rights to be purchased from Airbus and Boeing over the next decade. The Airbus firm order includes 210 A-320/321 Neo/XLR and 40 A350-900/1000. Boeing The firm’s orders include 190 737-Max, 20 787 and 10 777. We have also tied up with CFM International (CFM), Rolls-Royce and GE Aerospace for long-term maintenance of the engines.”
“This order demonstrates the vision and aspiration of the Tata Group to transform Air India into a World Class airline and connect India to every major city in the world “Non-Stop”. The order is also a testament to the tremendous economic potential released by privatization of Air India,” the post said.
The Tata Group-owned airline on Tuesday said it will buy a total of 470 wide-body and narrow-body planes from Airbus and Boeing, and the total deal value is estimated to be USD 80 billion (about Rs 6.40 lakh crore) as the airline . expands its operations.
“The order includes 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9s wide-body aircraft, as well as 210 Airbus A320/321 Neos and 190 Boeing 737 Max single-aisle aircraft. The A350 aircraft will be powered by Rolls-Royce engines, and the B777/787s will be powered by GE Aerospace’s engines. All single-aisle aircraft will be powered by CFM International’s engines, the airline said in a statement.
According to Air India, the first of the new aircraft will enter service in late 2023 and the majority of aircraft are due from mid-2025.
Meanwhile, US President Joe Biden has reportedly lashed out at the Prime Minister Narendra Modi The historic Air India-Boeing deal will create up to one million jobs across 44 US states and further deepen bilateral ties.
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