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Air India signs agreements to purchase 470 planes from Airbus and Boeing

By Nagasunder in Business News, posted June 21, 2023

Air India confirmed its purchase of 470 Airbus and Boeing planes worth $70 billion at list price on Tuesday.

AI announced the agreement in February, signing a letter of intent for 400 single and 70 dual aisle airframe types, which would begin joining its fleet in a few months.

This also gives AI options and purchase rights for another 370 planes, potentially making it an 840-plane transaction.

IndiGo, the country's largest airline, placed a firm order for 500 Airbus A320 family planes on Monday, making it the largest purchase by an Indian carrier and surpassing Air India's recent deal for 470 planes.

The IndiGo contract — valued at nearly $50 billion at market price, albeit IndiGo would have

On Tuesday, the Tata Group airline signed purchase agreements for the 470 aircraft — 190 Boeing 737MAX, 140 Airbus A320neo and 70 Airbus A321neo (400 narrow bodies) and 34 A350-1000, 20 Boeing 787 Dreamliners, 10 Boeing 777X, and six A350-900 (70 wide bodies) — at the ongoing Paris Air Show.

Tata Sons and AI chairman N Chandrasekaran said: “This landmark step further positions Air India for long-term growth and success that, we have every hope, will come together to represent the best of modern aviation to the world.”

AI CEO & MD Campbell Wilson said: “Our ambitious fleet renewal and expansion programme will see Air India operate the most advanced and fuel-efficient aircraft across our route network within five years. We are proud to be working with all our partners in this journey to rebuild a global airline which reflects India taking a more confident posture around the world.”

Satair, a subsidiary of Airbus, and Boeing Global Services will provide AI with a variety of solutions, including parts and maintenance supply, digital apps, and modification services.

The Airbus A350 will spearhead the new aircraft deliveries later this year, with the majority of the order arriving in mid-2025. Air India has already begun receiving 11 leased B777 and 25 A320 aircraft in order to speed up its fleet and network expansion.

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Airbus chief commercial officer Christian Scherer said: “We are excited to be a key partner in the reinvention of the Flying Maharaja. Under the leadership of the Tata Group and a focussed new management, this is one of the most ambitious projects in the airline business today. We are proud that the efficiencies, comfort and range capability offered by our latest generation aircraft will contribute to the process, as Air India reclaims its rightful position as a world-class premium carrier.

"The Airbus services package is a perfect future-oriented choice that will form a core element of Air India’s transformation.”

Boeing Commercial Airplanes president and CEO Stan Deal said: “The fuel-efficient mix of next-generation airplanes including the 737 MAX, 787 Dreamliner and 777X will sustainably power Air India’s future fleet in the world’s fastest-growing commercial aviation market.”

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