According to N Chandrasekaran, the chairman of Tata Group which is Air India’s new owner, Air India has made a deal to purchase 250 planes from Airbus. The order will include 210 narrow-body planes and 40 widebody aircraft. This purchase is part of a larger order for 470 planes, with 220 expected to be ordered from Boeing, Airbus’ competitor.
The purchase of these planes is part of Air India’s plan for expansion and rejuvenation under Tata ownership, with plans to expand over the course of the next decade. “We on our part are going through a massive transformation because we are committed to building a world class airline. One of the most important thing is a modern fleet which is efficient and can perform for all routes,” Chandrasekaran said.
The deal will mark a turning point for Air India which, under new chief executive Campbell Wilson, is working to revive its reputation as a world-class airline and shake off its image of being a tardy, run-down operation with an aging fleet and poor service.
Air India is expected to surpass American Airlines’ previous record of purchasing 460 planes from both Airbus and Boeing over a decade ago, making it the largest purchase by any airline. In December, Air India was in talks to purchase close to 500 planes, according to Reuters. Despite the anticipated discounts, the deal is likely to be worth tens of billions of dollars. The timing of the purchase is challenging for plane manufacturers who are facing increased pressure on both industrial and environmental fronts, but the demand for their planes is rising once again after the pandemic.
