Air India is believed to be getting close to finalizing major aircraft order deals with manufacturers, in what would be the most significant move yet by Tata Group, the carrier’s new owner.
The airline has been in negotiations with Boeing and Airbus for aircraft to fulfil its long-term fleet growth ambitions.
The airline is preparing to reach agreements for these orders in coming days, according to Reuters, which reports that these could be for up to 400 narrowbodies and 100 widebodies. This will likely include a range of types from both manufacturers.
Air India’s parent Tata Group has made a string of investment announcements since taking over the carrier in January. It has reached deals to lease about 40 aircraft to take care of short-term expansion needs, and it is also launching a $400 million refurbishment program for its current fleet.
Tata Group reached a deal with the Singapore Airlines Group to merge their joint venture carrier Air Vistara into Air India. Tata also has LCCs Air India Express and AirAsia India in its stable.
The Tata airline holdings combined have 203 aircraft in service, with another 18 stored, according to Aviation Week Network’s Fleet Discovery database.
These airlines combined would account for about 25% of India’s domestic market, data from CAPA and OAG shows. This would be the second-largest share, behind market leader IndiGo. Air India holds the largest share of India’s international market.
Other Indian carriers already have large order backlogs. IndiGo has more than 500 aircraft on order, SpiceJet 140, Akasa 60, and Go First 90.
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