Air India close to sealing historic order for up to 500 jets costing US$100 billion
- The potential order comes days after the Tata Group announced the merger of Air India with Vistara, a joint venture with Singapore Airlines
- Expanding the fleet in the world’s fastest-growing airline market, would contribute to PM Modi’s goal of growing the economy to US$5 trillion
Air India is close to placing landmark orders for as many as 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, industry sources said on Sunday.
The orders include as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity as finishing touches are placed on the mammoth deal in coming days.
Such a deal could top US$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 immediately 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.