Air India Negotiates New Mega Order for Narrow-Body Jets
Air India, owned by the Tata Group, is in advanced negotiations with Airbus and Boeing for a new massive order of narrow-body jets, according to industry sources cited by Reuters.
An Unprecedented Expansion
This new order would come on top of the record-breaking deal in 2023, when the Indian airline ordered 470 aircraft from both manufacturers. Just a year later, the company finalized another agreement to acquire an additional 100 jets from Airbus.
Now, discussions are underway to further expand this investment with “hundreds” of additional aircraft, as indicated by two sources close to the process. While the exact number has not been officially confirmed, one source suggested a provisional total of 200 units.
In the World’s Fastest-Growing Market
The potential announcement of this deal comes as global aviation leaders gather in India, the world’s fastest-growing aviation market. The event will feature Indian Prime Minister Narendra Modi, who will lead the summit where key industry developments are expected to be unveiled.
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Urgent Modernization to Regain Ground
After years of underinvestment under state ownership, Air India has lost ground to international competitors. Since its privatization and return to the Tata Group, the company has sought to reclaim market share through a complete transformation of its fleet and operations. The acquisition of modern, fuel-efficient aircraft is a critical part of this process.
Narrow-body aircraft, essential for short- and medium-haul routes, form the operational core of most airlines worldwide. An updated and sizable fleet will not only allow Air India to increase flight frequencies but also meet the growing passenger demand in both domestic and international markets.
Challenges on the Horizon
However, this aggressive expansion plan faces a complex backdrop. Airbus and Boeing are grappling with significant supply chain issues, leading to major delivery delays. The shortage of aircraft in the market threatens to limit the manufacturers’ ability to fulfill such large orders.
A Strategic Move
For Air India, securing these aircraft is more than an upgrade—it’s a statement of intent. The airline doesn’t just aim to compete; it aims to lead in an environment where demand is soaring, but capacity is still recovering post-pandemic.
If the deal is finalized, it would mark another milestone in the ambitious roadmap laid out by the Tata Group and solidify Air India’s position as a key player in the new global aviation landscape.
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