February 11th, 2023 09:17 pm | Updated February 12, 2023 07:29 AM IST – Bengaluru/Paris
symbolic picture | photo credit: Reuters
Air India has sealed a jumbo deal for nearly 500 new aircraft worth more than $100 billion at list prices, industry sources told Reuters, which could become the largest order by any airline as it looks to expand its new portfolio. seeks to re-establish itself under the owners.
The deal, split evenly between France’s Airbus and rival planner Boeing, was first reported by Reuters in December and could finally be announced as early as next week, the sources said.
Air India has agreed to buy 250 Airbus aircraft, split between 210 single-aisle A320neos and 40 widebody A350s, and 220 Boeing aircraft including 190 of its 737 MAX narrowbody jets, 20 787 widebodies and 10 777Xs Are.
While Airbus and Air India signed the deal on Friday, Boeing agreed its deal with the airline on January 27, a date that marks a year since Tata took back ownership of the former state-run carrier. sources told Reuters.
Airbus declined to comment. Air India did not immediately respond to an email seeking comment outside regular business hours.
In a note to employees on 27 January, the airline said it was “finalizing a historic order for new aircraft”.
The order reflects Air India’s strategy to modernize its aging fleet and re-capture a solid share of travel between India’s large overseas diaspora and cities such as Delhi and Mumbai, mainly with its youth aircraft. dominated by Gulf rivals such as Emirates.
The deal for 400 narrowbodies will allow Air India to win a greater share of regional international traffic and the domestic market, setting up a two-front battle with IndiGo.
While the Airbus figure is slightly less than the 275 originally envisaged, the sources did not rule out provision by Air India for top-up acquisitions or leases later.
It was not immediately clear to what extent the numbers in the agreement include options that could change the total tally when final orders are arrived at.
The record order is aimed at catapulting Air India into the league of large global airlines and making it an impressive client for planners and suppliers at a time when its home market is witnessing a post-COVID-19 travel boom.
Air India, with its Maharaja mascot, was once known for its luxuriously decorated planes and stellar service, but its reputation declined as the financial crisis escalated in the mid-2000s.
Under its new owners, the airline is looking to restore its reputation at home and abroad as a one-stop carrier with impeccable service and world-class aircraft.