Tata-owned Air India has agreed to purchase 250 Airbus planes, said group chairman N Chandrasekaran on Tuesday. The airline, which is expanding by launching new routes, will purchase 40 wide-body A350 planes and 210 narrow-body planes. The wide-body plane will be used for extremely long flights.
“We have a great working relationship with Airbus. Today, I am pleased to announce that we have signed a letter of intent with Airbus to purchase 250 aircraft “Chandrasekaran stated this via video conference at the launch of the new Air India-Airbus Partnership.
The Partnership was launched in the presence of Prime Minister Narendra Modi, French President Emmanuel Macron, Aviation Minister Jyotiraditya Scindia, and Airbus CEO Guillaume Faury.
Reuters reported last week on the deal, which it said could be the single largest order ever placed by an airline. According to the report, Air India signed the agreement with Airbus of France on February 10.
Tata Group acquired Air India in January of last year after winning a bid of Rs 18,000 crore. Since acquiring the airline, the Tata Group has taken several steps to gain a larger share of the aviation market.
Air India unveiled Vihaan, a multi-stage transformation roadmap, in September of last year.
AI (which means “the dawn of a new era” in Sanskrit) – towards its stated goal of becoming a world-class global airline.
According to the plan, the airline will strive to increase its domestic market share to at least 30% over the next five years while significantly expanding its international routes from its current market share.
“The plan is intended to put Air India on a path to sustained growth, profitability, and market leadership,” the company said in a statement outlining the strategy.
In response to the transformation plan, Air India MD and CEO Campbell Wilson stated that the airline’s fleet expansion would include a mix of narrow-body and wide-body aircraft to meet a variety of network needs.
The Tata Group announced the merger of Vistara, a 51:49 joint venture between Tata Sons and Singapore Airlines, with Air India in November. With a combined fleet of 218 aircraft, Air India became the largest international carrier and the second-largest domestic carrier after IndiGo.
