Air India finalized a significant aircraft order at the Paris Air Show, several months after signing in February an Intention Agreement to Purchase 470 aircraft from Boeing and Airbus. This firm purchase is part of a five-year plan aimed at expanding the network and increasing the fleet following the acquisition of Air India by the Tata Group in early 2022.
The new investor seeks to position Air India as the leading airline in the region, in a domestic market dominated by low-cost airlines, while also competing with Gulf-based airlines like Qatar Airways, Saudia, Etihad, and Emirates.
The order is divided between 250 Airbus and 220 Boeing aircraft, with an additional 70 aircraft included as options.
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Air India and Airbus Orders in Paris
In February 2023, the airline had signed a Letter of Intent to acquire these aircraft. The complete order includes 140 A320neo, 70 A321neo, 34 A350-1000, and 6 A350-900. In addition, Air India has selected a digital and maintenance package from Airbus to boost the airline’s transformation and growth strategy.
The Airbus A350-900 were previously owned by Aeroflot and were stored when the conflict between Ukraine and Russia broke out. These aircraft will be delivered between 2023 and 2024. On the other hand, the Airbus A350-1000 will be delivered from 2025 onwards.
This order complements the agreement reached in 2022 with several lessors, where Air India will incorporate 21 Airbus A320neo and four A321neo (the latter already delivered) during 2023, to strengthen its national and international short and medium-haul network.
See Also: Air India seals a deal with lessors for additional Airbus and Boeing aircraft
According to the airline, the Airbus A320neo will have a two-class configuration with 162 seats, while the A321neo will have two classes and will accommodate 192 passengers. The A350-900 aircraft has been configured to accommodate 316 passengers, with 28 in business class, 24 in premium economy class, and 264 in economy class.
Air India’s current fleet from the European manufacturer consists of 18 Airbus A319ceo, 9 Airbus A320, 27 A320neo, 14 Airbus A321ceo, and 4 Airbus A321neo aircraft, with a total of 72 aircraft. Its subsidiary, AirAsia India (AIX Connect), operates 28 A320ceo aircraft.
Airbus has also announced an agreement to use its Satair Integrated Materials Solutions (IMS) platform, a company that will provide maintenance solutions and ensure rotating or consumable parts for Air India’s aircraft. In addition, Air India will be the launch customer for Airbus’ Skywise Core X3, a data platform specifically designed to address the challenges of aircraft operations.
See Also: New owner, new aircraft: Air India will incorporate 30 aircraft in 2023
Air India and Boeing Orders in Paris
In February 2023, U.S. President Joe Biden revealed that Boeing and Air India would make a mega order of over a hundred aircraft. During the 2023 Paris Air Show, both companies finally closed a deal for a firm purchase of 220 aircraft, with options for 70 additional.
The order includes 190 737 MAX aircraft (8 and -10), with options for 50 more, which will replace and expand the fleet of Air India Express which currently consists of 29 Boeing 737-800 aircraft. This move is aimed at competing with low-cost airlines like Akasa Air, IndiGo, and SpiceJet. In addition, Air India will merge with AirAsia India.
In the wide-body aircraft segment, the order includes 20 Boeing 787-9 and 10 Boeing 777-9 aircraft, with options for 20 additional Boeing 787 Dreamliners. This represents the largest order from Boeing in South Asia and highlights its 90-year partnership with Air India.
Currently, the Boeing fleet in the Air India Group includes 29 Boeing 737-800 aircraft operated by Air India Express, 27 Boeing 787-8, 13 Boeing 777-300ER, and 3 Boeing 777-200LR aircraft. In 2022, Air India signed an agreement with lessors to include 5 Boeing 777-200LR and 6 Boeing 777-300ER aircraft, which were gradually delivered between 2022 and this year.
Key Conclusions from Air India’s Order at the Paris Air Show
Air India’s order consolidates Airbus’ dominance in the Indian market, where airlines such as IndiGo, Vistara, Air India, and Air Asia India collectively operate around 500 Airbus A320ceo and NEO aircraft, with orders for an additional 1000 aircraft, all from the Airbus A320 family.
Air India’s order for Airbus A350 aircraft marks the return of the European manufacturer to the wide-body segment in India. Jet Airways and Kingfisher Airlines were the largest operators in this segment until their disappearance, with 16 Airbus A330-200/-300 and 5 A340-500/-600 aircraft, respectively.
Finally, this significant order by Air India represents a strong commitment to their growth strategy, offering an upgraded and modern fleet to passengers, with an increased focus on customer service and sustainability. The massive purchase marks a clear intent to make Air India a prominent player in the Asian and international aviation market.
