Air India unveils record deal for planes

BENGALURU, India — Air India will buy 470 aircraft from Airbus and Boeing under a historic pair of mega agreements announced on Tuesday, transforming the former national carrier as it prepares for scorching growth.

The airline, which is owned by the Tata Group, announced a contract to buy 250 Airbus planes at an Aero India salon in Bengaluru in a ceremony attended virtually by Indian Prime Minister Narendra Modi and French President Emmanuel Macron.

That was followed by a White House announcement that Air India also agreed to a firm order of 220 Boeing aircraft.

The two deals combined constitute the largest unveiled at the same time by a commercial carrier, overtaking a 2011 announcement by American Airlines to buy 460 planes.

While there was no official value in Tuesday's announcements, a calculation of the list price for the jets suggests the orders are worth more than $70 billion in total, Agence France-Presse reported.

After the worst days of COVID-19, major carriers have been unveiling massive new jet orders amid rising travel demand.

The record order aims to put Air India in the league of large global airlines and make it an influential customer for plane makers and suppliers at a time when its home market is enjoying a strong post-COVID-19 travel surge.

'Massive transformation'

"We are going through a massive transformation," Air India chairman N. Chandrasekaran said at the ceremony in India.

"One of the most important things is a modern fleet, which can perform for all routes."

Modi has described strengthening civil aviation as an important aspect of national infrastructure, citing estimates that India will need more than 2,000 aircraft in the next 15 years.

Under the deal with Airbus, Air India signed a letter of intent to buy 210 narrow-body A320neo jets and 40 long-haul A350 aircraft — with an unspecified number of options for more — as it plots to capture domestic market share and turn Indian airports into global travel hubs.

The European aircraft manufacturer already has an engineering center in the country and sources some components from Indian suppliers.

The agreement between Boeing and Air India includes options for 50 additional 737 MAXs and 20 787-9s. When finalized, this will be the largest Boeing order in South Asia and a historic milestone in the aerospace company's nearly 90-year partnership with the carrier, the announcement said.

The White House put the contract in the context of a US-India initiative on critical and emerging technology unveiled between US President Joe Biden and Modi in May and expanded last month.

Air India was founded by the tea-to-steel conglomerate Tata Group in 1932, and the Indian government bought a majority stake after independence.

Agencies - Xinhua