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Air India is in talks with Airbus and Boeing for a major aircraft deal, potentially involving hundreds of planes, including 200 narrow-body jets.
Air India placed a then-record order for 470 planes from both suppliers in 2023 and another 100 Airbus jets last year. (File photo)
Talks are underway between Tata Group’s Air India and two aircraft manufacturers, Airbus and Boeing, for a major aircraft deal, including some 200 extra single-aisle planes. This is being touted as a deal significant enough to surpass the mammoth deal of 2023. This development comes as the Indian carrier pursues a multi-billion revamp, news agency Reuters, citing industry sources, reported.
The reports of a potential new significant deal from Air India emerged as global airline bosses converged in the world’s fastest-growing aviation market for Delhi industry summit to be addressed by Prime Minister Narendra Modi on Monday.
It is expected that the deal could involve hundreds of airplanes in total spread across various sizes. The deal discussions expand on earlier reported discussions for a further batch of large wide-body aircraft, Reuters reported citing sources.
It is learnt that in those talks, Boeing is edging forward as the front-runner to sell more of its 777X jets, the sources told Reuters.
India’s flag carrier placed a then-record order for 470 planes from both suppliers in 2023 and another 100 Airbus jets last year.
The back-to-back plane orders come at a time when aircraft manufacturers are scrambling with supply chain issues leading to severe delays in aircraft delivery and a looming jet shortage.
Getting new planes is crucial for Air India, which has suffered from years of under-investment under government ownership and is now undertaking an ambitious modernisation plan to recapture market share lost to global rivals.
The exact number of narrowbody jets under the new order was not immediately clear but two sources put it in the hundreds and one said it involved a provisional total of 200 narrow-body planes, which are the workhorse of aviation fleets worldwide.
The timing of any Air India deal is not known yet and usually it takes months for multi-billion-dollar aircraft orders to get finalised.
According to Airbus forecasts, Indian aviation industry is expanding at some 7% annually. However, analysts say its growth remains is restricted due to various factors, including weak infrastructure, especially as it looks to connect hinterlands to bigger cities.
On the eve of the airline meeting in the national capital, the International Air Transport Association of 300 global carriers said the country’s airlines were poised to demonstrate continued rapid growth, clouded by expensive fuel costs and high taxes.
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d…Read More
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More
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Delhi, India, India
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