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Published: Feb 16, 2023
Updated: Feb 16, 2023

Air India Makes Aviation History with World's Largest $70 Billion Aircraft Deal for 470 Planes

Air India, now owned by the Tata group, has made aviation history with its recent announcement of the world's largest ever single-tranche aircraft purchase. The airline has ordered 470 planes, worth over $70 billion at list price, from two major aircraft makers: Airbus and Boeing.

Air India's Historic Order for 470 Aircraft

This impressive order consists of 250 planes from Airbus and 220 planes from Boeing. From Airbus, Air India has ordered 40 wide-body A350 planes and 210 narrow-body A320neo family planes, with the option to increase this order. From Boeing, the airline has ordered 10 wide-body B777X planes, 20 wide-body B787 planes, and 190 narrow-body B737MAX planes, with an option for an additional 20 B787s and 50 B737MAXs.

Reactions from World Leaders

The first planes, 25 Boeing 737s and six Airbus A350-900s, are expected to arrive in the second half of 2023. This marks a significant moment for Air India and the aviation industry in India, with Prime Minister Narendra Modi describing the deal as a "landmark," reflecting India's success and expectations in the civil aviation sector.

"Make in India" Strategy by Airbus

The purchase also highlights the growing confidence and collaboration between India, France, and the United States, with Tata Sons Chairman N Chandrasekaran noting that Air India is undergoing a "massive transformation," and requires a modern, efficient fleet to support its growth. Additionally, the aircraft order signals the strength of the US-India economic partnership, with President Joe Biden calling the deal "historic."

Historic and Significant deal

The Air India order is particularly significant given the complex negotiations involved in securing it, with two airframers and six engine suppliers vying for position. However, the deal is seen as an important moment for the airline, Indian aviation, and the manufacturing sector in India, with Airbus CEO Guillaume Faury noting that the A350 aircraft would become a new flagship for transcontinental travel, even as the A320neo plane would remain the flagship for domestic and regional service.

Overall, this deal highlights Air India's ambitions to transform India into an international aviation hub, with the airline working towards bigger partnerships with Airbus and looking to bring commercial aircraft manufacturing to India in the future.