GURUGRAM- Tata Group-owned FSC Air India (AI) is considering a fresh multi-billion dollar order for 30 to 40 widebody jets split between Airbus A350 and Boeing 777X models, according to industry sources.
One source indicates the potential deal could exceed 50 aircraft, though details remain unfinalized.
Photo: Cado HandersonAir India New Widebody Order
“Things should become clearer closer to the Paris Air Show in June,” a source told Reuters, speaking on condition of anonymity.
This expansion builds upon Air India’s massive 2023 deal for 470 aircraft from both manufacturers and an additional 100 Airbus jets purchased last year.
While those orders primarily consisted of single-aisle aircraft, the carrier already has 50 Airbus A350s, 10 Boeing 777Xs, and 20 Boeing 787 Dreamliners on order from previous deals.
The latest widebody acquisition would further advance Air India’s ambitious modernization strategy under new owner Tata Group as the former state carrier works to recapture market share lost to global competitors.
Photo: EurospotSurging International Travel Demand
The potential new aircraft order coincides with surging international passenger traffic from India, expected to grow 15-20% in the current fiscal year ending March 31, outpacing domestic travel growth of 7-10%, according to ICRA, Moody’s local ratings agency.
Airlines worldwide are competing for limited widebody jet production slots following high demand for smaller narrowbody aircraft from rapidly expanding carriers like India’s market leader IndiGo.
Tata Group’s efforts to revitalize Air India face intense scrutiny from investors, manufacturers, and lessors after decades of decline under state ownership, with aircraft delivery delays creating additional challenges. The once-prestigious airline’s reputation deteriorated since the mid-2000s due to financial difficulties, aging fleet, and service quality issues.
Air India CEO Campbell Wilson recently stated that global aircraft shortages will continue for at least four years, with supplies of engines, premium cabin seats, and certain fuselage components remaining constrained. These delays have forced the airline to maintain older aircraft in service and extend Tata’s five-year transformation timeline.
While managing these procurement challenges, Air India aims to reclaim market share from international competitors like Emirates, Lufthansa, and Turkish Airlines, which have historically attracted Indian travelers with modern fleets and superior premium offerings. Currently, Indian carriers account for only 43-44% of outbound passenger traffic from India, according to ICRA data.
Air India and its low-cost subsidiary Air India Express are projected to receive approximately 20 narrow and widebody aircraft this year, according to UK consultancy Cirium Ascend data.
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Photo: Air IndiaDecoding 570 Planes Order
Air India placed landmark orders for 470 aircraft from Airbus and Boeing in June 2023 as a cornerstone of its Vihaan.AI transformation program. The airline subsequently ordered 100 additional Airbus aircraft, bringing its total order to 570 planes.
These substantial orders aim to modernize Air India’s fleet and position the carrier for significant growth as India progresses toward becoming the world’s third-largest aviation market. The massive aircraft acquisition directly supports both domestic and international aviation expansion while strengthening India’s global aviation presence.
The orders are strategically divided between Airbus and Boeing, with Air India selecting 250 Airbus and 220 Boeing aircraft.
- The Airbus order includes 40 widebody A350s (20 A350-900 and 20 A350-1000) and 210 single-aisle A320 Family aircraft (140 A320neo and 70 A321neo).
- The Boeing order comprises 30 widebody aircraft (20 B787 Dreamliners and 10 B777X) and 190 single-aisle B737-8 planes.
The 2024 supplementary order added 10 more A350 widebody aircraft and 90 A320 Family single-aisle jets, bringing the total to 100 additional aircraft.
Since September 2023, Air India has received 41 aircraft deliveries, including 6 A350-900 widebodies and 35 B737-8 single-aisle planes. However, 529 aircraft from the total orders remain outstanding, with 344 from Airbus (44 A350s and 300 A320 Family) and 185 from Boeing (20 B787 Dreamliners, 10 B777X, and 155 B737-8).
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