Edited By: Namit Singh Sengar
Last Updated: February 16, 2023, 11:17 IST
Air India’s largest-ever deal in aviation history for 470 jets is worth $115 billion. (File Photo)
According to Air India, the first of the new aircraft will enter service in late 2023 and the bulk of the planes are to arrive from mid-2025 onwards.
Air India has confirmed that apart from the 470 aircraft, the deal has the option to purchase 370 aircraft (under options and purchase rights to be procured from Airbus & Boeing), which will take deal quantity to 840 aircraft.
Air India has the option to buy an additional 370 planes as part of its deal with aircraft manufactures Airbus SE and Boeing Co, said Nipun Aggarwal, the airline’s chief commercial and transformation officer.
The total order now stands at 840 aircraft, with a firm order of 470 airplanes including 250 aircraft from Airbus and 220 jets from Boeing. A firm order indicates confirmation while an option does not indicate confirmation and thereby, an airline can choose not to exercise an option.
“It is indeed a landmark moment in the history of Air India and Indian aviation. This order of 840 aircrafts has been a culmination of a fascinating journey that began almost two years ago starting with the Air India privatisation process,” Aggarwal said in a LinkedIn post.
“The order comprises of 470 firm aircraft, 370 options and purchase rights to be procured from Airbus and Boeing over the next decade. The Airbus firm order comprises 210 A-320/321 Neo / XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s. We have also signed up for long term maintenance of the engines with CFM International (CFM), Rolls-Royce and GE Aerospace.”
“This order demonstrates the vision and aspiration of Tata Group to transform Air India into a World Class Airline and connect India “Non-Stop” to every major city in the world. This order is also a testament to the tremendous economic potential unleashed by the Air India privatisation,” the post stated.
Tata Group-owned airline on Tuesday said it will buy a total of 470 wide-body and narrow-body planes from Airbus and Boeing, and the total deal value is estimated to be USD 80 billion (around Rs 6.40 lakh crore) as the airline expands its operations.
“The order comprises 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9s wide-body aircraft, as well as 210 Airbus A320/321 Neos and 190 Boeing 737 MAX single-aisle aircraft. The A350 aircraft will be powered by Rolls-Royce engines, and the B777/787s by engines from GE Aerospace. All single-aisle aircraft will be powered by engines from CFM International,” the airline had said in a statement.
According to Air India, the first of the new aircraft will enter service in late 2023 and the bulk of the planes are to arrive from mid-2025 onwards.
Meanwhile, US President Joe Biden has reportedly told Prime Minister Narendra Modi that the landmark Air India-Boeing deal will create up to 1 million jobs across 44 states in the US and will further deepen bilateral ties.
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