Air India Inks Agreement To Procure 470 Aircraft From Boeing, Airbus In India's Second-Largest Aviation Deal

In February,  Air India had announced mega deals with aircraft manufacturers Airbus and Boeing to acquire 470 jets at an estimated cost of Rs 6.4 lakh crore. 

Tata Sons chairman N Chandrashekhar with Boeing officials at the Paris Air Show on Tuesday.

Source : Twitter@BoeingAirplanes

Air India on Tuesday signed agreements to acquire 470 aircraft from Airbus and Boeing at the Paris Air Show. The deals were finalised in February this year. While signing the deals, Tata Sons and Air India chairman N Chandrasekaran said "This landmark step further positions Air India for long-term growth and success that, we have every hope, will come together to represent the best of modern aviation to the world."

In February,  Air India announced mega deals with aircraft manufacturers Airbus and Boeing to acquire 490 jets at an estimated cost of Rs 6.4 lakh crore. 

The order included 400 single-aisle aircraft (mainly used for domestic travel), split between 140 A320neos, 70 A321neos and 190 Boeing 737 MAXs, and 70 wide-body aircraft (mainly used for international travel) that include 34 A350-1000, 20 Boeing 787 Dreamliners, 10 Boeing 777-9 and six A350-900. 

Airbus in a statement said: "Air India has firmed up its order for 250 Airbus aircraft and selected an Airbus maintenance and digital package to power the airline’s transformation and growth strategy. The aircraft order includes 140 A320neo and 70 A321neo single-aisle aircraft as well as 34 A350-1000 and six A350-900 wide-body jets. The airline had signed a Letter of Intent to acquire these aircraft in February 2023."

Soon after signing the deal, Boeing said: "The order, which includes 190 737 MAXs, 20 787 Dreamliners and 10 777X jets with options for 50 737 MAXs and 20 787 Dreamliners, is Boeing's largest order in South Asia and highlights its 90-year partnership with Air India."

However, IndiGo on Monday outdid Air India and sealed the country's largest aviation deal by placing an order for 500 A320 aircraft at the Paris Air Show. IndiGo at present operates more than 300 aircraft and it has previous orders of 480 aircraft, which are yet to be delivered.  The IndiGo order book included a mix of A320NEO, A321NEO and A321XLR aircraft. 

Hailing the IndiGo agreement, Civil Aviation Minister Jyotiraditya Scindia said: "India has set another landmark with this largest-ever recorded order by a carrier with any aircraft manufacturer in the world.” He expressed confidence that this investment will yield fruitful outcomes in terms of employment opportunities within India.

He also said, “Every dollar invested in civil aviation yields $3.1 in terms of new growth, as well as the employment multiplier. Every direct job in civil aviation results in 6.1 indirect jobs in the sector. And therefore, there are tremendous dividends that accrue from the ever-expanding civil aviation sector.”