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Air India, on Monday, confirmed an order for 100 Airbus aircraft — 10 widebody A350s and 90 narrowbody A320 Family jets.
This new order builds on last year’s record-breaking agreement for 470 aircraft from Airbus and Boeing, taking Air India’s Airbus tally to 350 planes. The aircraft order are part of a broader transformation plan, Vihaan.AI, aimed at restoring the airline’s legacy and positioning it as a global leader.
Having received six A350s so far, Air India currently has an order pending of 344 new aircraft with Airbus. In 2023, the airline placed orders for 220 widebody and narrowbody aircraft with Boeing, with 185 still awaiting delivery.
Air India’s latest acquisitions include the Airbus A350s and A320 Family aircraft, which boast improved fuel efficiency, operational reliability, and passenger comfort. The A350s are already flying non-stop routes from India to London and New York.
India’s aviation market is booming. Domestic passenger traffic is expected to hit 170 million in fiscal 2025, with international traffic growing by 15-20%. With a young, aspirational population and improving infrastructure, demand for both domestic and international air travel is surging.
“We see a clear case for Air India to expand its fleet beyond the 470 aircraft ordered last year,” said N. Chandrasekaran, Chairman of Tata Sons in a release. “These additional 100 Airbus aircraft will help us connect India to every corner of the world.”
The New Air India
However, this Air India transformation isn’t limited to aircraft. The airline has revamped its brand, introduced new business-class cabins, and modernized cabin crew uniforms — all aimed at delivering a world-class flying experience.
The partnership with Airbus also extends to maintenance. Air India has signed a Flight Hour Services-Component (FHS-C) agreement to optimize the reliability of its A350 fleet. Guillaume Faury, CEO of Airbus, called this collaboration a testament to Tata Group’s ambitious vision for Air India.
In other developments, last month Air India completed the merger with Vistara. The merged entity now operates under the Air India brand with over 5,600 weekly flights. As part of the deal, the loyalty programs of the two airlines have also been merged to form a redesigned program called “Maharaja Club.”
A Booming Aviation Industry
India is the third-largest domestic aviation market globally and one of the fastest-growing. The government plans to invest $11 billion in airport infrastructure, targeting 200 operational airports by 2025.
Indian credit rating agency ICRA estimates a robust 7-10% year-on-year growth in domestic passenger traffic in fiscal 2025, with international traffic expected to double in five years. However, challenges like supply chain disruptions and engine failures persist, grounding 16-18% of the fleet as of September.
Indian Civil Aviation Minister Kinjarapu Rammohan Naidu in October said the country might need 4,000 additional planes over the next two decades to cater to the demand. Currently, Indian airlines are operating around 800 aircraft and have an order book of over 1,200 more.
The Indian government also plans to invest INR 920 billion ($11 billion) in airport infrastructure for construction of new airports and expansion of existing ones.
India looks to have 200 operational airports by 2025, up from 157 airports at present.
Air India CEO Campbell Wilson at the Skift India Summit in March 2024.
