Back in December 2022 we learned how Air India was nearing a record-breaking aircraft order. Several days ago it was revealed that contracts for this order had been signed, and today Air India has formally announced the order.
Air India places biggest aircraft order in history
Air India was privatized just over a year ago, and is now owned by Tata Group. The carrier’s owners are trying to turn things around for the better. They’ve been making progress, though as you’d expect, the transformation isn’t happening overnight.
The biggest part of Air India’s transformation involves the airline placing a historic aircraft order for 470 jets, including planes from both Airbus and Boeing. Air India has finalized an order for the following aircraft (these are all firm orders:
- Air India is purchasing 250 Airbus jets, including 140 A320neos, 70 A321neos, six A350-900s, and 34 A350-1000s
- Air India is purchasing 220 Boeing jets, including 190 737 MAXs (including the -8 and -10 series), 20 787-9s, and 10 777-9s
Some planes will start to be delivered in late 2023, though we’re told to expect the bulk of deliveries starting in mid-2025. In addition to the firm orders, Air India has 70 additional options with Boeing, including for 50 737 MAXs and 20 787s.
At list prices, these deals are worth many tens of billions of dollars. Prior to this, the biggest aircraft order ever was from American Airlines roughly a decade ago, when the airline ordered 460 Airbus and Boeing jets. It would appear that Air India has just beaten that record.
As you can see, Air India isn’t going for fleet consistency with this order, but rather I assume the priority is securing orders with delivery slots in the not-too-distant future, which requires going with multiple aircraft manufacturers.
Arguably the most interesting part of this development is the Boeing 777-9 order. This is Boeing’s first 777X order in years, as the jet has been struggling with certification, and now isn’t expected to enter passenger service until at least 2025.
Ahead of these new aircraft deliveries, Air India has been leasing some planes to add capacity, including getting some former Delta Boeing 777s.
Tata Group seems serious about reinventing Air India
Tata Group was Air India’s initial owner when the company was founded in the 1930s, before it became government owned. I think it goes without saying that Tata Group is serious about turning the airline around, or else the company wouldn’t have bought a money-losing airline with endless issues.
Tata Group’s takeover of Air India was announced over a year ago, and initially not much changed. However, it seems that we’re finally now seeing what a transformation will look like.
At this point we know that Air India and Vistara will be merging, and that Singapore Airlines will be taking a roughly 25% stake in the airline. It has also been announced that Air India will be spending $400 million updating the interiors of its long haul jets.
For context on the scale of Air India’s aircraft order, Air India and Vistara currently have around 220 planes combined. This makes the company the largest international airline in India, and the second largest domestic airline, after IndiGo.
Tata Group now seems to be going all-in on a transformation. If enough money is invested in the airline, I have no doubt that Air India can have a modern fleet and competitive hard product. The question is whether the culture at the company can change, in terms of service, reliability, etc. Singapore Airlines being involved certainly gives me some hope.
If Air India can actually be turned into a good, profitable airline, it might just be the greatest airline turnaround story ever. But that’s also still a big “if” for now.
Bottom line
Air India has announced an order for 470 aircraft. This order is split between Airbus and Boeing, and includes the Airbus A320neo, Boeing 737 MAX, Airbus A350, Boeing 787, and Boeing 777X.
Air India’s transformation is going full speed ahead, between the merger with Vistara, Singapore Airlines’ ownership stake, long haul cabins being refreshed, and now this. I can’t wait to see how this all plays out.
What do you make of Air India’s aircraft order?
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