Air India has sealed orders for a record 470 planes from Airbus and Boeing, speeding the resuscitation of a national icon under new owners Tata Group as Europe and the United States lauded New Delhi’s strengthening economic and political connections.
Air India is competing with domestic behemoth IndiGo to serve what will soon be the world’s largest population. The provisional orders comprise 220 planes from Boeing and 250 jets from Airbus.
U.S. President Joe Biden referred to the agreement as “historic” and discussed it by phone with Indian Prime Minister Narendra Modi, as part of a flurry of high-level reactions as the magnitude of India’s needs provided a rare bonanza for both competing plane giants in an industry where the winner typically takes all.
Air India would deploy the 210 A320neo narrowbody aircraft and 40 A350 widebody aircraft to fly “ultra-long routes” according to Tata Chairman N Chandrasekaran.
Boeing will deliver 190 737 MAX aircraft, 20 787 Dreamliners, and 10 777X superjumbos.
A further 25 Airbus jets will be leased, bringing the total number of aircraft acquired to 495, according to an Airbus executive.
Boeing shares increased 1.3% following the announcement, while Airbus rose 0.5%.