Indian Economy News

Air India’s 470-jet deal is the largest commercial aviation history

  • IBEF
  • February 15, 2023

The Tata Group will purchase 470 aircraft from Airbus and Boeing in an effort to upgrade the Air India fleet and revive the struggling airline. With the Boeing order valued at over US$ 34 billion and the Airbus transaction at about US$ 35 billion, this agreement is the largest in the history of commercial aviation. The deal signed with Boeing includes options to spend an additional US$ 12 billion on 50 737 Max aircraft and 20 787 aircraft.

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.

The 25 Boeing B737-800s and 6 Airbus A350-900s will arrive in the second half of 2023, according to Air India. To speed up its fleet and network expansion, Air India has begun taking possession of 25 leased A320 and 11 leased B777 aircraft.

In a sense, Air India is a national endeavour, not "yet another," according to Mr. N Chandrasekaran, Chairman, Tata Group. For our part, Chandrasekaran stated, "We are undergoing a significant transformation as we are dedicated to creating a world-class airline known for safety, on-time performance, the best of Indian hospitality, and a contemporary fleet."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.