Air India nears historic order for 500 jets

Paris/New Delhi, December 11

Air India is close to placing landmark orders for as many as 500 jetliners worth tens of billions of dollars for both Airbus and Boeing as it carves out an ambitious renaissance under the Tata Group conglomerate, industry sources said on Sunday.

Deliberate strategy to win back a solid share of traffic flow to and from India, which is currently dominated by foreign carriers such as Emirates

The orders include 400 narrow-body jets and 100 or

more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s, they said. Such a deal could top $100 billion dollars at list prices, including any options, and rank among the biggest by a single airline in volume terms, overshadowing a combined order for 460 Airbus and Boeing jets from American Airlines over a decade ago.

Even after significant expected discounts, the deal would be worth tens of billions of dollars and cap a volatile year for an industry whose jets are back in demand after the pandemic but which is facing mounting industrial and environmental pressures.

Airbus and Boeing declined to comment. Tata Group-owned Air India did not respond to a request for comment. The potential order comes days after Tata announced the merger of Air India with Vistara, a joint-venture with Singapore Airlines, to create a bigger full-service carrier and strengthen its presence in domestic and international skies. The planned order reflects a deliberate strategy to win back a solid share of traffic flows to and from India, which are currently dominated by foreign carriers such as Emirates. Air India also wants to win a bigger share of regional international traffic and the domestic market, setting up a battle on both fronts with IndiGo. But experts warn many hurdles stand in the way of Air India’s ambition to recover a strong global position, including frail domestic infrastructure, pilot shortages and threat of tough competition with established Gulf and other carriers. —Reuters