The historic order by Air India is already taking the global aviation industry by a wave as the news of 470 aircraft order has just begun to sink in, it has come to light that Air India has options to buy another 370 jets, swelling the figures of total aircraft to 840. Chief Commercial and Transformation Officer Nipun Aggarwal wrote in a LinkedIn post late Wednesday. This number has not been disclosed before.
“It is indeed a landmark moment in the history of Air India and Indian aviation. This order of 840 aircraft has been a culmination of a fascinating journey that began almost two years ago starting with the Air India privatisation process,” read Aggarwal’s LinkedIn post.
Aggarwal also shed light on the aircraft models which would be added to the existing fleet of the airline. “The order comprises of 470 firm aircraft, 370 options, and purchase rights to be procured from Airbus and Boeing over the next decade. The Airbus firm order comprises 210 A-320/321 Neo / XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s," he noted.
“This order is also a testament to the tremendous economic potential unleashed by the Air India privatization,” Aggarwal wrote.
Air India placed an order for 250 planes with Airbus and 220 planes with Boeing as one of the largest deals for planes ever made in commercial aviation history.
While the Tata Group is yet to disclose the total deal value, it is estimated that the total value of jets is about $80 billion. Air India’s Boeing deal for 220 planes is valued at $34 billion. The Air India order is Boeing's third-biggest sale ever in dollar value and second in terms of the number of planes.
The first aircraft to arrive will be 25 brand-new Boeing B737-800s and 6 Airbus A350-900s in the second half of 2023, with deliveries ramping up in 2025 and beyond.
Tata Sons and Air India Chairman, N Chandrasekaran, had said that these new aircraft will modernise the Airline’s fleet and onboard products, and dramatically expand its global network. He added that Air India is not yet another project but is akin to a national project and that the Tata Group is also eyeing bringing commercial aircraft manufacturing to India at some point.
Air India’s deal with Boeing and Airbus was welcomed by Prime Minister Narendra Modi, France President Emmanuel Macron, US President Joseph R. Biden and UK Prime Minister Rishi Sunak.