Air India has placed orders for 470 aircraft with Airbus and Boeing. According to Air India CEO Campbell Wilson, the value of this deal is $ 70 billion (5.8 lakh crore). Air India will be given Airbus 250 and Boeing 220 aircraft. Airbus will also start delivering the planes by the end of this year.
Under the deal with Airbus, 40 wide-body A350 aircraft, 210 narrowbody single-aisle A320 Neos aircraft will be available. And the deal with Boeing is worth $34 billion. Under this, 190 B737 Max aircraft, 20 B787 aircraft and 10 B777X aircraft will be delivered to Air India.
Air India will be able to provide short-haul destination service of 4-5 hours with the narrowbody plane. With this, it will be able to give a tough competition to Indigo, which currently occupies more than 50% of the domestic market. The wide body aircraft will help Tata expand its footprint in North America, Europe and Australia. Air India will add around 50 aircraft to its fleet by the end of FY24. This will increase its capacity by about 50%.
Since acquiring Air India early last year, the Tata group has been in talks with aircraft manufacturers to revamp its fleet. Recently, Air India's Chief Executive Officer Campbell Wilson had said that Air India wants to increase its market share by 30% on both domestic and international routes in the next 5 years.