By Sam Boughedda
Air India will purchase over 220 aircraft from Boeing (NYSE:BA) and 250 jets from Airbus Group (EPA:AIR) (OTC:EADSY), it was revealed Tuesday.
The deals are part of Air India's decades-long transformation under its new owners, Tata Group.
The Airbus order is said to comprise 210 A320neo narrowbody planes and 40 A350 widebody aircraft, which the carrier will use for "ultra-long routes across the globe," N Chandrasekaran, Tata's Chairman, said on Tuesday.
The move demonstrates Tata's ambition to restore Air India's image and boost its earnings.
"One of the most important things is a modern fleet which is efficient and can perform for all routes," Chandrasekaran told a virtual press briefing, which was attended by India's Prime Minister Narendra Modi and French President Emmanuel Macron, according to Reuters.
The combined 470-plane order is the biggest by a single airline and sits alongside Air India's plan to also lease around 25 more Airbus jets to meet its immediate needs.
Under the deal for Boeing aircraft, Air India will purchase 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs, with the deal valued at $34 billion at list price, according to the Biden administration. The agreement also includes options for 50 additional 737 MAXs and 20 787-9s, taking the total to 290 airplanes for a total of $45.9B at list price.
Commenting on the Boeing deal, Campbell Wilson, CEO and MD of Air India, said: "These new airplanes will enable us to dramatically expand our network, both domestically and internationally, and will come with a completely new, world-class onboard product enabling passengers to travel in the highest levels of comfort and safety. With this order, we are delighted to take our long relationship with Boeing to a new level."