Air India, owned by Indian conglomerate Tata Sons, will buy 250 jets from European aviation champion Airbus and 220 from Boeing in the US, its chairman announced this week.
The Airbus side of the commitment is an order for 140 A320neo and 70 A321neo single-aisle aircraft as well as 34 A350-1000 and six A350-900 wide-body.
“This is a historic moment for Airbus and for Air India. India is on the verge of an international air travel revolution, and we are honoured that our partnership with the Tatas and our aircraft solutions will write that new chapter for the country’s air-connectivity,” says Christian Scherer, Airbus Chief Commercial Officer and Head of International.
The Boeing part of the order consists of 190 737 MAX, 20 787 Dreamliner and 10 777X long-haul jets. Boeing says the agreement between Boeing and Air India includes options for 50 additional 737 MAXs and 20 787-9s. Once finalised as a firm order, it will be the largest Boeing order in South Asia.
"Air India's selection of Boeing's family of passenger jets shows their confidence in our products and services in the world's fastest growing aviation market, and their decision will support engineering and manufacturing jobs at Boeing factories in Washington state, South Carolina and across our supply base," said Stan Deal, president and CEO of Boeing Commercial Airplanes. "With the industry-leading fuel efficiency of the 737 MAX, 787 Dreamliner and 777X, Air India is well-positioned to achieve its expansion plans and become a world-class global airline with an Indian heart."
The blockbuster order aims to both modernise and expand the airline’s fleet with the objective of creating a larger and premium full-service carrier that will cater to the growing travel demand in the region. Airbus has already confirmed Air India’s first A350-900 will be delivered later this year.
Over the next decade, India will grow to have the largest population in the world, its economy will expand the fastest among the G20 nations, and projections indicate that a fast growing middle class will spend more on air travel. Passenger traffic in India is forecast to grow fast, including on the long-range markets in the US, Europe and Asia-Pacific that the A350 and 777 is well-positioned to serve.
As part of the Airbus deal, Air India will take delivery of the increasingly sought-after A321neo, the longest-fuselage member of Airbus’ best-selling, single-aisle A320 Family, comfortably seating 180 to 220 passengers in a typical two-class layout, and as many as 244 in a higher-density arrangement. The A321neo’s environmental performance allows for at least 20% less fuel burn and CO2 emissions as well as 50% noise reduction, compared to previous generation aircraft such as older Boeing 737s.
On the Boeing side of the deal, Air India has also contracted with Boeing Global Services for lifecycle support services, including digital solutions, spare parts and landing gear exchange programmes, pilot and maintenance technician training, aircraft modifications and other services, to help smoothen its international operation, and improve the dispatch reliability for long-haul flights.
Boeing says the 737 MAX will provide flexibility across Air India's domestic and international network while reducing fuel use and emissions by 20% compared to the airplanes it replaces.
The Air India deals – together thought to be the largest in civil aviation history – are part of a turnaround plan by Tata, the owner of carmaker Jaguar Land Rover, after it took back control of the struggling airline in 2022. The national airline was founded in 1932 as Tata Airlines, before being nationalised in 1953. However, in recent years it had fallen into financial difficulties and was often caught up in political turmoil.
The mega-deals were placed with support from the highest political levels, with Indian Prime Minister Narendra Modi and French President Emmanuel Macron joining Tata family member Ratan Tata, Tata’s chair, Natarajan Chandrasekaran and Airbus chief executive Guillaume Faury in a video announcement. The US president, Joe Biden also hailed the Boeing order on Tuesday.
At list prices the Air India order would be worth tens of billions of pounds, but airlines often benefit from a variety of different discounts when committing to a very large order.
The UK government confirmed it was involved in the talks with Airbus, albeit several months ago. Prime Minister Rishi Sunak welcomed the Airbus deal, which the company said was worth “billions of pounds” for the British economy. Airbus wings are manufactured in Broughton, Wales, and Rolls-Royce engines are made in Derby, England.
The author is an aviation analyst. Twitter handle: @AlexInAir