Air India is considering a substantial new order for wide-body aircraft from both Boeing and Airbus, according to industry sources, as part of its ongoing transformation under Tata Group’s ownership.
The discussions are for 30 to 40 aircraft, divided between Airbus A350 and Boeing 777X models, with possibilities of exceeding 50 aircraft. Sources indicated to Reuters that the specifics remain under negotiation.
“Things should become clearer closer to the Paris Air Show (in June),”one source told Reuters.
This potential expansion follows the significant 2023 agreement for 470 aircraft from both manufacturers, plus an additional 100 Airbus aircraft last year, predominantly consisting of single-aisle planes. This new wide-body acquisition could enhance Air India’s modernisation strategy to regain its market position against international competitors.
Air India already has deals for 50 Airbus A350s, 10 Boeing 777Xs and 20 787 Dreamliners from previous agreements.
International passenger traffic from India is experiencing significant growth, with projections of 15-20% increase in the fiscal year ending March 31, surpassing domestic travel growth of 7-10%, according to ICRA, Moody’s local ratings agency.
Airlines are competing intensely to secure limited production slots for widebody aircraft, following high demand for smaller narrowbody planes from expanding carriers such as IndiGo, India’s largest airline.
The transformation of Air India under Tata’s ownership is garnering significant attention from stakeholders in the aviation industry, following years of decline during government control. However, the carrier’s progress is currently facing setbacks due to delays in aircraft deliveries.
According to ICRA, Indian airlines handle 43-44% of outbound passenger traffic from India, whilst international carriers continue to maintain the majority share.
Based on data from UK consultancy Cirium Ascend, Air India and its budget arm Air India Express are scheduled to receive approximately 20 aircraft this year, comprising both narrow and widebody models.
