In an effort to rebuild itself under its new owners, Air India has signed a massive contract for nearly 500 new aircraft worth over $100 billion.
Reportedly, this could be the airline’s biggest ever purchase as Air India under the Tata group is in the process of overhauling itself with a fuel-efficient fleet.
Air India will buy 250 Airbus aircraft, including 210 single-aisle A320neos and 40 wide-body A350s. Additionally, the airline aims to purchase 220 Boeing aircraft, including 190 Boeing 737 Max narrowbody aircraft, 20 Boeing 787 widebodies and 10 Boeing 777Xs.
While the airline reached an agreement with Boeing on 27 January – a year after Tata reclaimed ownership of the then state carrier – Airbus and Air India finalized their agreement on 10 February.
The agreement is notable as it comes as the ongoing merger of Vistara and Air India, which previously operated as AirAsia India and Air India Express respectively, goes ahead. The unified Air India aims to capture more than 30% of the market on domestic and international flights.
The takeover of Air India by the Tata group last year is one of the most famous privatization deals of Prime Minister Narendra Modi’s government. With a reserve price of Rs. 12,906 crore, the Tata group made a winning offer for Rs. 18,000 crore as the enterprise value of the airline. The proposal involved placing a loan of Rs. 15,300 crores while paying Rs. 2,700 crores. The deal was a bold attempt to turn around the long-struggling, loss-making carrier, which was heavily indebted.
frequently Asked question.
Who is the founder of Air India?
JRD Tata is the founder of Air India.
Where is the headquarter of Air India located?
Air India is headquartered in New Delhi, India and has a strong network of domestic and international routes.