Air India is almost on the verge of closing the historic deal of over 400 aircraft with Airbus and Boeing. Although it was initially speculated that the airline might place an order of 235 single-aisle aircraft with Airbus, the number has been tweaked. Air India and Airbus have agreed on an order for about 250 aircraft, and the deal is anticipated to be confirmed next week on Thursday.
The airline also has a contract with Boeing for roughly 200 aircraft, as per sources. Air India has not made any official statement regarding the deal.
Air India chief Campbell Wilson had made a public comment on January 27, 2023 that the airline is finalising a historic order of new aircraft.
Air India has not acquired new aircraft for over 16 years. The airline placed the last order in 2005, when still under Indian government control. The order was for 111 aircraft worth $10.8bn, with 68 aircraft from Boeing and remaining 43 with Airbus.
The current deal with Airbus is likely to include 40 A350s and Air India will be the first Indian carrier to operate the aircraft. Air India has operated the widebody aircraft previously already.
Currently, Indian carriers operate less than 50 widebody aircraft, an insignificant number for such a significant market, throwing open a huge scope for the long-haul flights.
In March 2022, Airbus forecast said that India had only about one-tenth of the widebody fleet installed in similar markets, depriving homegrown carriers of a larger share of the profitable long-haul routes now dominated by foreign airlines.
“It is time for Indian carriers to unlock the potential of international travel in and out of India, leveraging the country’s demographic, economic and geographic dividends,” Remi Maillard, President and MD, Airbus India & South Asia had said during an event last year. The forecast said that in order to serve the growing aviation industry, India will require an additional 34,000 pilots and 45,000 technicians by 2040.