Air India ordered a record 470 aircraft from Boeing and Airbus in a massive expansion of the recently privatized airline. The orders announced on February 14, 2023, are almost equally split between the American aircraft manufacturer Boeing and the European aviation giant Airbus.
With the delivery of the ordered aircraft, Air India will become one of the largest airlines in the world. Operating in the most populous country in the world, which is currently enjoying an economic boom, Air India has huge prospects for growth, not only in the domestic market but also in the international market.
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The order for Boeing includes 190 737 Max jets, 20 Boeing 787 Dreamliners, and 10 wide-body 777X planes, totaling 220 aircraft. The White House, while announcing the deal, said that the agreement also includes an option for an additional 70 jets, which will bring the deal’s price to about USD 46 billion.
Meanwhile, Airbus will deliver a total of 250 airplanes to Air India, including 210 A320 Neo narrow-body planes and 40 A350 wide-body aircraft for ultra-long distances. Air India is also entering into a lease agreement for another 25 Airbus planes, bringing the overall total to 495 new passenger jets. The overall order surpasses the world record for airplane orders by an airline, held by American Airlines for the order of 460 jetliners.
Tata Sons, India’s oldest and largest business group, regained ownership of Air India last year. It launched the airline in 1932; however, it was taken over by the government in 1953. It is estimated that India will require more than 2,000 commercial aircraft over the next five years to cater to the growing demand in the aviation sector, and the recent order will fulfill a significant part of this requirement.