A year after coming into the Tata group, Air India said it had placed an order for 470 planes: 250 with European plane maker Airbus and 220 with American giant Boeing - the world’s largest ever single-tranche aircraft purchase.
By doing this it has eclipsed American Airlines’ 2011 order for 460 planes. The price of the deal is valued at over $70 billion.
From Airbus, Air India has ordered 40 wide-body A350 planes and 210 narrow-body A320neo family planes, and it has the option to increase the size of this order.
From Boeing, the airline has ordered 10 wide-body B777X planes, 20 wide-body B787 planes, and 190 narrow-body B737MAX planes, with an option for an additional 20 B787s and 50 B737MAXs.
A wide-body plane has a bigger fuel tank, allowing it to traverse directly on longer distances such as India-US routes. The first aircraft to arrive will be 25 Boeing 737s and six Airbus A350-900s in the second half of 2023.
Air India had last ordered planes in 2006, when it had booked 111 aircraft: 68 from Boeing and 43 from Airbus. Along with the aircraft order, Air India has signed deals with engine manufacturers: CFM International (for narrow-body A320/B737s), GE (for Boeing 777x/787), and Rolls-Royce for A350 type planes.
The first aircraft to arrive will be 25 Boeing 737s and six Airbus A350-900s in the second half of 2023.
Prime Minister Narendra Modi attended a video call with French President Emmanuel Macron on the Airbus-Air India deal. He called it a “landmark deal”, demonstrating not just deep relations between India and France but also India’s success and expectations in the civil aviation sector.
In a statement, US President Joe Biden called the Boeing-Air India deal a “historic” one.