Tata Group’s Air India Accelerates Fleet Growth with Dynamic 100-Airbus Order, Reinforcing Global Dominance After Historic 2023 Aircraft Deal

Published on December 9, 2024

Air India, part of Tata Group, accelerates fleet expansion with a 100-Airbus order, solidifying its global dominance following the historic 2023 aircraft deal.

Air India, operated by the Tata Group, announced on Monday that it has finalized an order for 100 new aircraft from Airbus, including 90 narrow-body A320 family planes and 10 wide-body A350s. This latest order adds to the group’s previous purchase of 470 aircraft made last year.

In February 2023, Air India placed one of the largest aircraft orders in aviation history, securing 250 aircraft from Airbus and 220 from Boeing. At that time, Nipun Aggarwal, Air India’s Chief Commercial and Transformation Officer, disclosed that the airline had “options” for an additional 370 aircraft, bringing the potential total to 840. Of this, 470 were firm commitments, while the remaining 370 were options.

Currently, Air India operates a fleet of around 210 aircraft, with its low-cost subsidiary, Air India Express, flying 90 planes. Air India’s CEO, Campbell Wilson, indicated that the Air India Group’s fleet is set to grow from approximately 300 to 400 planes by 2027.

Additionally, the airline announced a new “Flight Hour Services-Component” agreement with Airbus, which will involve on-site support in Delhi for the maintenance of the expanding A350 fleet.

The expansion of Air India’s February 2023 order comes as Airbus faces challenges in meeting production targets due to supply chain disruptions. In June 2023, Airbus adjusted its 2024 delivery goal, lowering it from 800 to 770 aircraft due to shortages in engines and other components. Furthermore, the company postponed its target of manufacturing 75 narrow-body aircraft per month from 2026 to 2027.

When questioned about plans to establish a final assembly line for commercial planes in India, Airbus CEO Guillaume Faury stated that such an assembly line would be just a small part of the company’s broader ambitions, suggesting that it would not be the sole focus of their long-term strategy in the region.