Air India inks purchase agreements with Airbus, Boeing to firm up its 470-plane order

Air India’s firm orders include 34 A350-1000, six A350-900, 20 Boeing 787 Dreamliners, and 10 Boeing 777X wide-body aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo, and 190 Boeing 737MAX narrow-body aircraft.

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Air India is also in the process of refurbishing its existing planes and trying to get a few grounded ones back in the air.. (File)

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Air India on Tuesday signed the purchase agreements with Airbus and Boeing for its mammoth 470-aircraft order announced in February. The purchase agreements for the two orders–worth $70 billion by the aircraft’s list price–were signed on the sidelines of the Paris Air Show.

Air India’s firm orders include 34 A350-1000, six A350-900, 20 Boeing 787 Dreamliners, and 10 Boeing 777X wide-body aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo, and 190 Boeing 737MAX narrow-body aircraft.

At the time of announcement of the combined order in February, it was the largest-ever aircraft order in the world. Apart from the 470 planes that make up the firm order, Air India will have options to buy another 370 planes–300 from Airbus and 70 from Boeing. On Monday, IndiGo’s firm order for 500 Airbus A320neo family aircraft eclipsed the Air India order in terms of confirmed aircraft numbers. In value terms, the Air India order could still be bigger than the IndiGo order, given that the former includes a significant number of wide-body planes that are generally more expensive than narrow-body aircraft. The value of the IndiGo order is pegged at over $50 billion, based on list price assessments.

Also Read | IndiGo places largest-ever order in aviation history, inks pact for 500 Airbus A320neo family planes

Wide-body planes are usually deployed to operate long-haul and ultra-long haul non-stop flights, while narrow-body aircraft are predominantly used for domestic flights, and can also be employed to operate short- and medium-haul international hops.

“The Airbus A350 will lead the deliveries of the new aircraft later this year, with the bulk of the order to arrive from mid-2025 onwards,” Air India said in a statement. Satair, an Airbus company, and Boeing Global Services will support Air India with a broad range of solutions, including parts and maintenance provisioning, digital applications, and modification services, the Tata group airline 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,” Air India’s Chief Executive Officer and Managing Director Campbell Wilson said.

The aircraft will serve the revamped Air India group. The Tata group is currently in the process of consolidating its four airlines–Air India, Vistara, Air India Express, and AIX Connect (Air Asia India)–into a full-service carrier and a low-cost carrier. The full service carrier, which will be formed with the merger of Air India and Vistara, will be called Air India, while the other two group airlines will merge to form the no-frills carrier, which will retain the Air India Express brand.

Apart from the 470 planes on order, Air India is also leasing aircraft to expand its network. The carrier has already started taking delivery of these leased aircraft–11 Boeing 777 planes and 25 Airbus A320 aircraft.