Manas Dasgupta
NEW DELHI, Feb 14: Air India on Tuesday announced purchasing of 250 Airbus aircrafts and is also expected to finalise another deal of acquiring at least 220 aircrafts from Boeing for its domestic and international routes.
Tata Sons Chairman N. Chandrasekaran announced the order of 250 Airbus aircrafts. The virtual event was attended by Prime Minister Narendra Modi and French President Emmanuel Macron, signalling the political and economic importance of a deal involving India’s former flag bearer.
“This important deal shows, along with the deepening of relations between India and France, the successes and aspirations of the civil aviation sector in India. Today, civil aviation is an integral part of India’s growth,” Modi said.
The order includes 40 wide-body A350s and 210 Airbus narrow-body aircraft. During a virtual event, Mr. Chandrasekaran said a letter of intent has been signed with Airbus for the acquisition of the aircraft. The wide-body aircraft will be used for ultra-long flights.
A White House official said Air India was also finalising a deal to purchase 200 planes from Boeing, media reports said. The deal, however, was yet to be confirmed officially.
Air India’s deal with Airbus as announced on Tuesday was the first in more than 17 years. It is also the first order placed by the carrier under the ownership of Tata Group which acquired Air India in January, last year. Air India, earlier under the ownership of the government, had acquired new aircraft more than 17 years ago.
The airline’s last order was for 111 planes — 68 from Boeing and 43 from Airbus — and that deal was worth $10.8 billion. The order was placed in 2005. On January 27, when the Tata Group completed the first year of taking over Air India, the airline said it was “finalising a historic order of new aircraft to power future growth.
The airline has put in place a roadmap under Vihaan.AI for transformation over the next five years and has taken various measures, including committing $400 million to refurbish the interiors of its entire wide-body fleet.
Modi hailed the deal between Air India and Airbus and said India’s growing aviation sector would need over 2,000 aircraft in the next 15 years. “Our civil aviation sector is an integral part of India’s development. Strengthening the civil aviation sector is an important aspect of our national infrastructure policy,” he said. In the last eight years, the number of airports has gone up from 74 to 147, Modi pointed out.
Through the scheme UDAN, remote parts of the country are also being connected through air connectivity, which is giving a boost to the economic and social development of the people, he said. In the near future, India would become the third biggest market in the world in the aviation sector, he said.
“Whether it is the issue of security and stability in the Indo-Pacific region, or global food security and health security, India and France together are making a positive contribution,” Mr. Modi said in his remarks. “Today, the India-France partnership is playing a key role in ensuring stability and balance of the international order and the multilateral system,” he said.
The Toulouse, France-based plane maker did not disclose financial terms of the deal, which could be worth tens of billions of dollars. > Chandrasekaran said the A350s will be used to “fly all ultra-long distance across the globe.” > Single-aisle A320s are typically used on short-haul routes.
Chandrasekaran said Airbus and Tata were working on bigger partnerships, including an ambition “to bring in commercial aircraft manufacturing at some point in time in the future”.
Air India’s order is expected to top American Airlines’ combined deal for 460 Airbus and Boeing planes more than a decade ago – making it the single largest deal by an airline. > Air India remains India’s largest international carrier, but its domestic market share stood at only 8.6 per cent in September.
The carrier is aiming to take a 30 per cent domestic share by the end of 2027 while expanding its fleet to cover more international routes.
