Multinational conglomerate Tata Group, owner of Air India, is reportedly close to finalizing an order for up to 50 Airbus A350 aircraft for the airline, according to Bloomberg. The deal would also include up to 100 A321neo. The company could introduce the European manufacturer’s most modern wide-body aircraft during the first quarter of 2023.
According to reports, it could take aircraft initially destined for Russia’s Aeroflot. Last May, Turkish Airlines announced that it would incorporate six A350-900s, presumably taking production line slots intended for that company. On the other hand, the legal dispute between Qatar Airways and Airbus over the quality of the aircraft’s paintwork could also favor the acquisition of units by Air India.
Should the order materialize, it would mean an important step for the manufacturer in the Asian country. The Indian airline market was, until the beginning of the pandemic, the fastest growing one in the world. Current projections seem to confirm this trend for the coming years.
However, no airline based in the country operates wide-body aircraft produced by Airbus. Jet Airways was an A330 customer until it ceased operations. Now, the segment is dominated by its main competitor, Boeing. Air India, for example, operates the 777-200, 777-300 and 787-8 on its long-range routes.
Airbus does dominate the single-aisle market. IndiGo, Vistara, Go Airlines India and AirAsia India operate the A230neo and A321neo.
On the other hand, the deal would be the first of its kind for the airline since 2006, when it placed orders for 111 aircraft. At that time, it ordered 68 aircraft from Boeing (including 787-8s) and 43 from Airbus. Deliveries continued progressively until 2018.
In January this year, the Tata Group finalized the handover of Air India, which had been announced in October 2021. Three months later, Airbus conducted a demonstration and promotional tour of the A350 in Asia. Rémi Maillard, President and Managing Director at Airbus for India and South Asia, then communicated that the company wanted to increase its market share in the country. In turn, Tata Group executives showed interest in the products.
The deal would be opportune for both. On the one hand, Airbus would increase its sales after dealing with delivery problems caused by economic sanctions and legal disputes. On the other hand, Air India would boost its operations with one of the most efficient aircraft currently available and strengthen its position in one of the markets with the best growth projections.
See also: Another blow to Qatar: EASA claims the Airbus A350 is safe
