Air India formalises the deal to purchase 470 Airbus and Boeing aircraft

Air India firmed up its order with Airbus and Boeing to buy 470 aircraft. One of the biggest aircraft orders in aviation history, the transaction has a list price value of $70 billion. The order was first placed on February 14.

At the Paris Airshow, the airline signed separate purchase agreements for the jets as well as some services with the two aircraft manufacturers.

The orders include 34 A350-1000, 6 A350-900, 20 Boeing 787 Dreamliners and 10 Boeing 777X wide-body aircraft, as well as 140 Airbus A320neo, 70 Airbus A321neo and 190 Boeing 737MAX narrow-body aircraft.

'Happy to share that we have signed purchase agreements with Airbus and BoeingAirplanes at Paris Air Show today to add 470 new aircraft to enhance our fleet strength! Air India is committed to playing its part in building New India,' said Air India in a tweet.

Boeing in a statement said the two companies have finalised an order for up to 290 new Boeing jets, including 70 on option and expanded services.

Air India said the agreements go "one step further in its USD 70 billion (based on list prices) fleet expansion program that it announced in February this year".

The Airbus A350 will lead the deliveries of the new aircraft later this year, with the bulk of the order to arrive from mid-2025 onwards, it said.

N Chandrasekaran, Chairman of Tata Sons and Air India, said the landmark step further positions the airline for long-term growth and success that, "we have every hope, will come together to represent the best of modern aviation to the world".

Air India has already started taking delivery of 11 leased B777 and 25 A320 aircraft to accelerate its fleet and network expansion.

Campbell Wilson, Air India CEO and MD, said its ambitious fleet renewal and expansion programme will see the airline operate the most advanced and fuel-efficient aircraft across its route network within five years.

Satair, an Airbus company, and Boeing Global Services will support Air India with a broad range of solutions, including parts and maintenance provisioning, digital applications, and modification services.

"The order, which includes 190 737 MAXs, 20 787 Dreamliners and 10 777X jets with options for 50 737 MAXs and 20 787 Dreamliners, is Boeing's largest order in South Asia," Boeing said.

It also said that a set of aviation services will also enable Air India to sustainably expand its operations in South Asia's rapidly growing aviation market.

Over the next 20 years, South Asia is expected to more than triple its in-service fleet from 700 to 2,300 aeroplanes to meet passenger demand, Boeing said in the statement.