Air India orders 250 planes from Airbus, 220 from Boeing

In a move aimed at refurbishing the Air India fleet and turning around the ailing carrier, the Tata Group will buy 470 aircraft from Airbus and Boeing. The deal is the largest in commercial aviation history with the Boeing order estimated at $34 billion and the Airbus transaction at around $35 billion. The agreement signed with Boeing includes options for additional purchases of 50 737 Max jets and 20 787s valued at additional $12 billion.

The Air India hangars will soon have 250 Airbus aircraft, including 210 narrow body A320 aircraft and 40 wide body A350 planes. It will also house 220 Boeing jets comprising 190 737 Max aircraft, 20 787s and 10 777Xs.

This new order is Air India’s first in more than 17 years and the first under the Tata banner since the takeover a little over a year ago. The previous single-largest order was placed by American Airlines in 2011 for 460 aircraft.

Air India said the 25 Boeing B737-800s and six Airbus A350-900s would arrive in the second half of CY2023. In the interim, Air India has started taking delivery of 11 leased B777 and 25 A320 aircraft to accelerate its fleet and network expansion.

N Chandrasekaran, chairman, Tata Sons, said Air India was not a ‘yet another’ project in the manner of speaking, it is a national project. “We, on our part, are going through a massive transformation because we are committed to building a world-class airline known for safety, on-time performance, the best of Indian hospitality and modern fleet,” Chandrasekaran said.

The order for narrow body aircraft of Airbus has ‘significant options to be increased’, Chandrasekaran added in a video conference at which Prime Minister Narendra Modi, French President Emmanuel Macron and Tata Trust chairman Ratan Tata were present.

Air India’s current fleet strength is around 115 at the standalone level but including Vistara, AirAsia India and Air India Express, around 227 airplanes are in service. These comprise narrow body and wide body, Airbus and Boeing planes.

Guillaume Fuary, CEO, Airbus, said, “India is on the verge of an international air travel revolution and we are humbled at Airbus that our partnership with the Tata Group will contribute to this new chapter. The time is right for India to become an international hub.”

Last October, the Tata group and Airbus announced a partnership for manufacturing 40 C-295 transport aircraft for the Indian Air Force. Chandrasekaran also mentioned the Tata group’s ambition to venture into manufacturing of commercial aircraft.

“We are working with bigger partnerships and one of our ambitions for this country is to bring in the commercial aircraft manufacturing at some point in time in the future,” he said.

India’s civil aviation market is close to hitting pre-pandemic levels, leaving carriers scrambling to meet the surging demand, which has surprised market watchers. The number of flyers in 2022 grew 47% to 123 million compared to 2021, according to data released by the Directorate General of Civil Aviation.

The Centre is keen to revive or develop 100 unserved and underserved landing sites such as airports, heliports, water aerodromes and advanced landing ground by 2024 to extend air connectivity to the unconnected.

“The civil aviation sector is an integral part of India’s development. Strengthening civil aviation is an important aspect of our national infrastructure strategy. In the last 8 years the number of airports in India has jumped from 74 to 147. In near future, India will become the third-largest civil aviation market in the world,” the Prime Minister said.

US President Joe Biden hailed the “historic agreement” with Boeing. “This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree,” Biden said in a statement.

French President Emmanuel Macron highlighted the political and economic importance of the Airbus deal. However, the deal is expected to have other industrial spin-offs, with Macron pledging France will work with India beyond aircraft. “This achievement shows that Airbus and all its French partners are fully dedicated to develop new areas of dedication with India,” Macron said during the video presentation.

https://www.financialexpress.com/industry/air-indias-470-jet-deal-is-largest-commercial-aviation-history/2981711/