Air India Is Set To Buy 500 New Aircraft, The Biggest Deal In History

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

The orders include up to 400 narrow-body jets and 100 or more wide-body planes, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity as the massive deal nears completion.

Such a deal might reach $100 billion at list prices, including any options, and rank among the largest by a single airline in terms of volume, dwarfing American Airlines' combined order for 460 Airbus and Boeing jets over a decade ago.

Even after considerable expected discounts, the transaction would be worth tens of billions of dollars and would cap a turbulent year for a sector whose planes are back in demand following the pandemic but is facing rising industrial and environmental challenges.

Both Airbus and Boeing refused to comment. Air India, which is owned by the Tata Group, did not immediately reply to a request for comment.

The possible order comes just days after Tata announced the merger of Air India and Vistara, a joint venture with Singapore Airlines, in order to establish a larger full-service carrier with a stronger footprint in both local and international skies.

This agreement gives Tata a fleet of 218 aircraft, establishing Air India as the country's largest international carrier and the country's second-largest domestic carrier behind IndiGo.

Air India, with its maharajah mascot, was formerly recognized for its beautifully adorned planes and excellent service, but its reputation began to deteriorate in the mid-2000s as financial difficulties mounted.