Tata-Owned Air India Signs 'Largest Deal In Aviation History' With Boeing, Airbus To Buy 500 Aircrafts
Little over a year after Tata Sons acquired Air India, the conglomerate has gone on a shopping spree to modernise its ageing fleet.
Air India has signed a deal to buy about 500 new planes worth more than $100 billion at list prices, in what is said to be the single largest order by any airline in aviation history.
What is Air India buying?
According to reports, Air India is set to buy 250 Airbus planes, split between 210 single-aisle A320neos and 40 widebody A350s, and 220 Boeing aircraft, including 190 of its 737 MAX narrowbody jets, 20 787 widebodies and 10 777Xs.
The new flights are set to be delivered over the next eight years.
While Airbus and Air India signed the agreement on Friday, Boeing reportedly agreed to its deal on January 27, marking the Tata acquisition's first anniversary.
Why Air India needs a modern fleet
The erstwhile national carrier joined the Tata stable with an ageing and poorly-maintained fleet, and many had said that modernising it will be the biggest challenge the new owners will face.
The new aircraft set is expected to give Air India a much-needed image makeover. Through this move, the airline is looking to restore its reputation at home and abroad as a storied carrier with impeccable service and world-class planes.
One jumbo airline?under Air India brand
The Tata Group, which currently operates Vistara and AirAsia India, apart from Air India and Air India Express, is also consolidating its operations under one brand.
AirAsia India will merge with Air India Express and cater to the budget carrier category.
On the other hand, Vistara will be merged with Air India and operate under the latter's brand as a full-service airline.
Post the merger Air India will have a fleet size of 218, putting together its original 113, AirAsia India's 28, Vistara's 53, and Air India Express's 24.
Air India vs IndiGo?
Currently,?Indigo, the country's largest airline, has 245 aircraft and more are on their way.
With the massive order for new flights, Air India aims to re-capture a solid share of trips between India's large overseas diaspora and cities such as Delhi and Mumbai, dominated mainly by Gulf rivals such as Emirates with its young planes.
The deal for 400 narrowbodies will also allow Air India to win a more significant share of regional international traffic and the domestic market, setting up a battle on both fronts with IndiGo.
For more on news and current affairs from around the world, please visit?Indiatimes News.
