In historic deal, Air India to acquire 250 Airbus aircraft
Tata Group-owned Air India has penned the biggest aviation deal in history with Airbus. The airline will buy 250 aircraft from the French manufacturer. N Chandrasekaran, CEO of Tata Group announced the decision. "We have built a very good relationship with Airbus. Today I am happy to announce that we have signed a letter of intent to acquire 250 aircraft from Airbus," he said.
Why does this story matter?
It's been over a year since the Tata Group acquired Air India. Since then, the company has been making moves left, right, and center to get the airline back to the peak of India's aviation sector. Last year, the company announced the merger of Vistara with Air India. The decision to expand the fleet is in line with Tata Group's plans for the airline.
The airline will buy 40 wide-body aircraft
Air India's deal with Airbus includes 40 A350 wide-body long-range aircraft and 210 narrow-body ones. The Indian airline is on the path of recapturing its lost glory. "It is a historic moment for Airbus to help script Air India's revival," said Airbus CEO Guillaume Faury in a conference with Prime Minister Narendra Modi, French President Emmanuel Macron, and Aviation Minister Jyotiraditya Scindia, among others.
Air India also plans to acquire aircraft from Boeing
The deal with Airbus is a significant step in Air India's revival plans. The airline aims to revamp its fleet with fuel-efficient aircraft. A deal with Boeing to acquire another 220 aircraft is also in the works. The acquisitions are part of Vihaan.AI, a five-year plan announced by the company to capture 30% of the domestic market while significantly improving its international presence.
PM Modi called the deal a 'landmark'
"The order for 250 planes is the first step in not only expanding Air India's capacity but also in the journey to manufacturing commercial aircraft in India," Chandrasekaran said. PM Modi called the deal a "landmark" and said it reflects the deepening ties between India and France. He added that it also showcases the success of the country's aviation sector.
Airbus and Tata Group are working on locally manufacturing C295
Chandrasekaran said that the deal expands the partnership between Airbus and the Tata Group. The two have already agreed to manufacture Airbus' C295 aircraft in India. Airbus Defence and Space and Tata Air Systems Limited (TASL) are working on building a new factory to produce the C295 Persuader transporter aircraft by 2024. They also aim to manufacture commercial aircraft in the country.
