Air India bought 540 aircraft, this is the biggest aviation deal for Air India
Air India Ltd, owned by the Tata Group, has agreed to purchase a record-breaking 540 aircraft from both Boeing and Airbus
The Tata Group-owned airline, Air India, agreed to buy a record-breaking 540 aircraft from both Boeing and Airbus. This is the largest aviation agreement for the airline. With options for an additional 50 737 Maxs and 20 Dreamliner family (Airbus A321neos) aircraft, Air India has placed an order for 290 aircraft from both aircraft manufacturers, including 190 Boeing 737 Max, 20 Dreamliner family (Boeing 787) aircraft, and 10 Airbus 777X aircraft.
250 aircraft total—140 from Air India (A320neo), 70 from Air Max (A321neo), 34 from the Air Max family (A350-1000), and 6 from Air France-GmbH (A350-900)—have been ordered by Air India from both manufacturers.
The majority of the new fleet’s aircraft are anticipated to arrive by the middle of 2025, with the first aircraft going into service at the end of 2023.
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How this deal beneficial for Air India?
Air India stands to get multiple benefits from its acquisition of 540 aircraft.
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Route network expansion: With the new aircraft, Air India will be able to take advantage of the growing demand for air travel, both domestically and internationally, by adding more routes to its network.
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Enhanced Efficiency: Air India will run more profitably, cut costs, and increase operational efficiency with newer, fuel-efficient aircraft.
Better passenger experience: The new aircraft’s more modern and comfortable interior will help Air India attract more business.
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With the new aircraft, Air India hopes to improve passenger satisfaction: Employment creation: The contract will create millions of jobs in the US because Boeing has its headquarters there and will manufacture a significant portion of the aircraft there.
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Sturdy Partnership: This agreement will improve links between Air India and its suppliers, including as Boeing and Airbus, and the United States and India’s commercial relationships.
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Greater global presence: The new aircraft will help Air India increase its global footprint by allowing the airline to operate more long- and ultra-long-haul flights.
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Tata Group Airlines Consolidation: The acquisition is a part of a larger plan to combine Air India, Vistara, Air India Express, and AIX Connect (Air Asia India) into a single low-cost, full-service airline. -cost carriers, that is