A Air India decided to further expand its order for new aircraft, previously estimated at 150 units of narrow and widebody aircraft.
Air India is now looking to order up to 300 single-aisle aircraft, with a focus on the Airbus A320neo and Boeing 737 MAX family models. The single order can be estimated at US$40,5 billion.
The company hopes to expand its offering in the Indian market, to compete with other companies such as GoAir, Vistara and IndiGo. The Tata Group, which bought the airline from the government, is leading the company's expansion. The new planes will reduce the company's operating costs and fuel costs.
Previously, Air India had already communicated that it is closing an order for 50 Airbus A350 aircraft, with an estimated value of US$ 16 billion.
The company has also communicated to some pilots that they will be trained to operate the Airbus A350. The first planes will arrive in the first half of 2023.
Air India currently has around 115 aircraft in service, and this double order could represent a significant expansion of its fleet, as demand increases in the Indian market. The company also operates 27 Boeing 787-8 aircraft and another 27 A320neo, the newest in its fleet and which will be maintained.
Air India's last aircraft order was in 2006, when it placed orders for the purchase of 111 aircraft, 68 from Boeing and 43 from Airbus. Deliveries were made over the next 12 years.
Street: Bloomberg
