Air India, part of Tata Sons, ordered 470 aircraft from American Boeing Co. and Airbus SE, marking the largest deal for commercial aircraft in aviation history and coming as airlines scramble for jets to meet surging demand for air travel.
The airline said it has agreed to purchase 250 Airbus jets. It also ordered 220 Boeing planes, according to the White House, which announced the Boeing side of the deal.
That's not enough , the carrier also signed a firm order for 40 GEnx-1B and 20 GE9X engines, plus a multi-year TrueChoice™ engine services agreement to support the 20 Boeing 787 and 10 Boeing 777X aircraft.
While, the Airbus 250 aircraft commitment includes 140 A320neo and 70 A321neo single-aisle planes as well as 34 A350-1000 and six A350-900 wide-body jets ,Using 2018 numbers, the deal’s total value can be assumed almost $85 billion.
The Boeing orders, based on the planes’ list prices, came in at $45.9 billion for 190 of Boeing’s 737 MAX jets; 20 787 Dreamliners; and 10 of its 777X planes , including options for 50 MAX jets and 20 Dreamliners..
After Pandemic hibernation and change of ownership, Air India order aims to both modernise and expand it’s fleet with the objective of creating a larger and premium full-service carrier that will cater to the growing travel demand in the region.
Airlines and airports had to boost hiring as they struggled through a tumultuous summer of long lines, delays, cancellations and lost luggage. At the same time, carriers have been bingeing on new jets, taxing the assembly lines of both Airbus and Boeing.
“Airbus has been a longstanding partner of Air India, and these new aircraft will play an important part in delivering Vihaan.AI, Air India’s comprehensive transformation and growth strategy,” said Campbell Wilson, CEO and MD, Air India. “A core element of this transformation is the significant expansion of our network, both domestically and internationally, coupled with the elevation of our on-ground and onboard product to world-class standards. This order marks the start of a new chapter for both Airbus and Air India.”
Though multiple Aircraft models in a fleet is a challenge, Air India decided to maintain relationship with both the Aerospace giants, and ensure delivery slots from both the companies after months of negotiation.
The carrier aims getting back some of the traffic it has lost to domestic rivals , but in particular Gulf rivals internationally , that includes Qatar Airways and Emirates, which have populated the routes ferrying Indian passengers across the globe, for years now.
Air India was privatized last year and has a fleet of around 100 jets, most of them leased. While both plane makers took a broadly even share of the order, it marked the first time Airbus broke into Air India’s fleet of wide-body jets.
“This is a historic moment for Airbus and for Air India. India is on the verge of an international air travel revolution and we are honoured that our partnership with the Tatas and our aircraft solutions will write that new chapter for the country’s air-connectivity,” says Christian Scherer, Airbus Chief Commercial Officer and Head of International."
“The A350’s unique capability will unlock the pent-up potential of India’s long-haul market, its technology, long reach and second to none comfort will enable new routes and passenger experience with better economics and enhanced sustainability. Alongside the A350s, the A320 Family fleets will be the efficient, versatile asset to continue democratising and decarbonising air travel in the country – from domestic, regional, up to international levels.”
Airbus Chief Commercial Officer Christian Scherer also termed the widebody component as a coup.
“This is not a foot in the door, this is our full body in the door at Air India,” Mr. Scherer said.
Air India’s first batch of A350s will arrive later this year, Mr. Scherer said. Those models had originally been allocated for Russia’s Aeroflot Airlines before the sanctions came into action owing to Russian invasion of Ukraine.
Boeing has forecast India to be the fastest-growing aviation market in the world over the next two decades, with the country’s carriers expanding rapidly to meet the travel demand.
The American plane maker expects India to require about 2,210 new aircraft over the next 20 years. That will be driven predominantly by demand for smaller aircraft to feed a travel hungry domestic market that Boeing forecasts will double by the end of the decade.
Air India also announced a CFM order for more than 800 LEAP engines, the largest LEAP order ever, to power its entire narrowbody purchase of 210 Airbus A320/A321neo aircraft and 190 Boeing 737 MAX-family aircraft. The announcement includes a multi-year CFM services agreement. CFM is a 50/50 joint business between GE and Safran Aircraft Engines.
Air India was taken private by Tata for about $2.4 billion in January 2021, ending a decadeslong battle by the government to privatise the flag bearer company.
The deal returned Air India to its original owners Tata sons , after it was founded as Tata Airlines in 1932. It was nationalized in 1953, and in 2007 began suffering heavy losses after a merger with a rival state-run carrier, Indian Airlines.
Rolls-Royce was not behind , which bagged the biggest ever order of Trent XWB-97 engines 68 (+ 20 options) to power the Airbus A350-1000 & 12 Trent XWB-84 engines to power the Airbus A350-900.
Ratan Tata, the former chairman of Tata Sons, the holding company of Tata Group, said at the time of the reacquisition of the airline that the group intended to turn it into “one of the most prestigious airlines in the world.”
Founder of the Air India - JRD Tata was the first Indian pilot with his license having 'No. 1'.
