Air India places firm order for 100 more aircraft with Airbus

New Delhi: Tata Sons-owned Air India on Monday said it has placed a firm order for 100 more aircraft with Airbus. The firm order comprises a mix of 90 narrow body A320 family aircraft including A321 , and 10 widebody A350 planes.

With the latest order, Air India's total order book now stands at 570 aircraft, which has overshadowed IndiGo's previous order of 500 aircraft. Industry experts said the new deliveries are expected to commence after 2027. The company did not reveal the financial details of the order.

In 2023, Air India placed an order for 470 aircraft with Boeing and Airbus worth $70 billion, which consisted of a good mix of both narrow and wide body aircraft. Air India's order book with Airbus now stands at 350 aircraft, up from 250. Air India's order is expected to boost not only its international long-haul plans but also its domestic coverage.

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In a statement, N. Chandrasekaran, chairman, Tata Sons and Air India, said: “We see a clear case for Air India to expand its future fleet beyond the firm orders of the 470 aircraft placed last year. These additional 100 Airbus aircraft will help to position Air India on the path to greater growth and contribute to our mission of building Air India into a world-class airline that connects India to every corner of the world.”

Experts believe that a resurgent Air India could give its rivals a tough competition.

"Air India’s firm order of 100 more aircraft with Airbus has signalled its aggressive intent to take the battle for the skies to its rivals. The airline's point to point vision for Vihaan.AI is clear and hence the long-haul market is key for Air India’s international dominance. The enhanced A350 order may be just what AI needed," Sanjay Lazar, CEO of Avialaz Consultants, said.

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How things stand currently

Air India group is in the middle of its five-year transformation journey called Vihaan.AI. As per the plan, unveiled after Tata Sons acquired it in January 2022, the group is in its third phase or 'the climb phase', which commenced in April 2024 and will end in March 2027. The group is confident about the passenger demand next year, and believes that 2025 will be a year in which the airline will put all pieces together that it worked on in the last two years.

On 12 November, Air India completed its much-awaited merger with Vistara to create an integrated airline, partly owned by Singapore Airlines, that will be flying 120,000 passengers daily and connect more than 90 destinations. The completion of the amalgamation, which was announced in November 2022, came within six weeks of the integration of Air India Express and AIX Connect.

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Currently, Air India group has 300 aircraft in its fleet and it plans to expand it to 400 by 2027. The group operates 8,300 flights per week and flies 9 lakh passengers weekly. The group connects 55 domestic and 48 international destinations.