Air India Expands Airbus Order with 100 New Aircraft

Air India has disclosed an order of 100 more Airbus aircraft to its order book. This new order, announced in a joint statement by Airbus and Air India on December 9, includes 90 A320neo and 10 A350 aircraft. Airbus revealed that these additions were already included in its 2024 orders and deliveries filings.

On September 5, an undisclosed customer ordered 20 A320neo, 55 A321neo, five A350-900, and five A350-1000 aircraft. Speculations pointed toward Air India, which had previously ordered 85 aircraft under similar specifications. Later, additional orders were placed on October 21 and 25, amounting to five and ten A320neo, respectively, confirming the gradual assembly of this massive acquisition. This takes Air India’s total Airbus order tally to an astounding 344 aircraft.

Deliveries to Air India have already begun, with six Airbus A350-900s handed over between September and December 2023. Notably, these planes were initially intended for Aeroflot, the Russian flag carrier. However, due to Russia’s invasion of Ukraine and ensuing international sanctions, Aeroflot was unable to take delivery, paving the way for Air India to receive these advanced jets.

Air India’s Vision of Global Excellence

Natarajan Chandrasekaran, chairman of Tata Sons, Air India’s parent company, underscored the strategic importance of this expansion. He stated,

“These additional 100 Airbus aircraft will help to position Air India on the path to greater growth and contribute to our mission of building Air India into a world-class airline that connects India to every corner of the world.”

India’s aviation market is witnessing unparalleled growth, spurred by a young, travel-hungry population and rapid infrastructure development. Air India is leveraging this momentum to transform itself under the “Vihaan.AI” plan, supported by Tata Group’s vision.

What a Year for Aircraft Orders for Air India!

The recent addition marks another high point for Air India’s historic year. In February 2023, the airline made headlines by placing orders for a combined total of 470 aircraft from Airbus and Boeing. The Airbus deal included 140 A320neo, 70 A321neo, six A350-900, and 34 A350-1000, while the Boeing agreement featured 190 Boeing 737 MAX, 20 787 Dreamliners, and ten 777X aircraft, with further options for 50 737 MAX and 20 787s.

These mega deals were officially firmed up during the Paris Air Show in June 2023. Guillaume Faury, CEO of Airbus, expressed his enthusiasm about Air India’s renewed trust, saying,

“Through this continued partnership, we are committed to supporting the success of Air India’s ‘Vihaan.AI’ transformation plan under Tata’s vision and leadership.”

Competition Heats Up with IndiGo

As Air India builds its arsenal to expand its global reach, it faces stiff competition from IndiGo, India’s dominant domestic airline. While traditionally a low-cost carrier, IndiGo has been inching toward the full-service market. It introduced a business class product on select domestic routes and launched BlueChip, its frequent flyer program. Furthermore, IndiGo ordered 30 A350-900 aircraft to embark on long-haul international operations and damp-leased two Boeing 777-300ERs from Turkish Airlines.

IndiGo’s grip on the domestic market is undeniable, with an October 2023 market share of 63.3%, as per data from India’s Directorate General of Civil Aviation (DGCA). In contrast, Air India and Vistara, which finalized their merger on November 12, commanded a combined share of 28.5%.

• Featured image by Clément Alloing via Flickr

Youssef Yahya

Youssef Yahya is the CEO and Founder of Aviation for Aviators, a platform dedicated to the aviation industry. With over 3 years of experience as an aviation writer, Youssef is passionate about sharing his insights on aviation, entrepreneurship, and the broader business landscape. As a Teaching Assistant in Entrepreneurship at Nile University, he also nurtures the next generation of entrepreneurs. When he’s not exploring the skies or business ventures, you can find him saying, ‘Drag your coffee, and let’s talk aviation, entrepreneurship, and football.’

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