Air India Places New Order for Airbus Jets

By Tim Hepher and Aditi Shah
PARIS/DELHI (Reuters) – Air India is undergoing a significant transformation by ordering 85 new Airbus planes and may potentially acquire more Boeing jets following a historic order last year.

The Airbus order was revealed during a routine industry update, coinciding with the passing of Ratan Tata, the former chairman of Tata Group and an aviation pioneer. Airbus announced that an unnamed customer had placed an order for 75 A320-family jets and 10 long-haul A350s.

According to three industry sources, Air India is the airline behind this order, and discussions for a supplementary order from Boeing are also in progress. Air India has yet to comment on the Airbus deal, which was first reported by Bloomberg News. Airbus, in its routine monthly bulletin, refrained from commenting on any customer negotiations.

Ratan Tata, who took the helm from J.R.D. Tata in 1991, led the company for over 20 years. He played a vital role in establishing Vistara, a partnership with Singapore Airlines, and AirAsia India. After retiring, Tata Group regained control of Air India after nearly 70 years under public ownership. In a 2021 statement, Ratan Tata expressed hope that the revitalization of Air India would enhance Tata Group's aviation presence.

Air India is currently implementing a multi-billion-dollar overhaul to revive its once-prestigious image. Last year, it secured an agreement to purchase 470 jets, marking a major step in restoring the brand under Tata Group's control, which they regained in 2022. This order, the largest by a single airline at that time, included 250 jets from Airbus and 220 from Boeing.

Chief Commercial and Transformation Officer Nipun Aggarwal, who led the negotiations, stated Air India negotiated an additional 370 options and purchase rights from both Airbus and Boeing beyond the primary order. Last year, Air India confirmed options for 70 Boeing jets but did not disclose the specifics for Airbus.