In a historic order, Tata Group-led Air India is reportedly close to placing landmark orders for as many as 500 aircrafts. As per a report, these 500 jets are being bought from both Airbus and Boeing as Air India prepares to transform itself under the Tata Group.
According to a Reuters report, Air India’s order includes as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s.
Since the deal is one of the biggest seen in recent times, the report adds that it “could top $100 billion 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.”
Tata Group’s reported order to buy Boeing and Airbus jets for Air India comes at a time when the blue-chip group announced the merger of Air India with Vistara. The idea behind the merger was to create a bigger full-service carrier for better presence in the aviation sector.
With the whole merger and historic deal, as per Reuters, Air India could easily be touted as the country’s largest international carrier and second largest in the domestic market. Before Air India’s merger with Vistara, there were also reports that suggested that Vistara, as a brand may be scrapped entirely and the entire fleet of aircrafts would brand itself under Air India.
The report adds that Air India’s order of 500 jets would both replace and expand fleets in the world’s fastest growing airline market. It would also contribute to Prime Minister Narendra Modi’s goal of expanding the economy to $5 trillion.
