Air India signs deal to acquire 250 Airbus aircraft
15 Feb 2023
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Air India and Airbus on Tuesday announced a historic deal, under which the Tata Group airline will acquire 250 aircraft, including 40 A350 wide-body and 210 A320neo narrow-body planes, from Airbus. Prime Minister Narendra Modi called it a "landmark event" and said it not only reflects upon the deepening ties of India and France, but also shows the success of India's aviation sector.
Announcing the "historic" partnership on Tuesday, Tata Sons chairman N Chandrasekaran said his company has "signed letter of intent to acquire 250 Airbus aircraft" from Airbus. As part of the deal, Air India will buy 250 Airbus planes, including 40 A350 wide-body and 210 A320neo narrow-body planes, Chandrasekaran said.
"We also have significant options to increase the fleet order once we grow...we are working for bigger partnerships. One of the ambitions for this country is to bring in commercial aircraft manufacturing in the future," the Tata Sons chairman stated.
During a virtual event being attended by Prime Minister Narendra Modi and French President Emmanuel Macron, among others, Chandrasekaran said the wide-body planes will be used for ultra-long haul flights.
PM Modi called it a "landmark" agreement and said it not only reflects upon the deepening ties of India and France, but also shows the success of India's aviation sector.
Emphasising that the number of airports in India increased from 74 to 147, PM Modi said India is "becoming the third largest market in the aviation sector". He added that in the next 15 years, India would need more than 2,000 aircraft.
"Many new opportunities are opening up in aerospace manufacturing under India's 'Make in India-Make for the World' vision," the prime minister added.
He explained to investors the opportunities India offers in the aviation industry. "India can become the hub of MROs (Maintenance, Repair and Operations). Today, all global aviation companies are present in India, so I request everyone to avail the opportunity," he said.
Meanwhile, Macron said Airbus has been contributing to the outstanding development of India. "There's a deep commitment in France, provided the state-of-the-art and most efficient technology available to India, and to be part of the made-in-India strategy," he said while addressing the virtual meet.
Since acquiring loss-making Air India from the government in January 2022, Tata Group has been taking various measures to revive the carrier.
Air India, earlier under the ownership of the government, had acquired new aircraft more than 17 years ago.
The airline's last order was for 111 planes — 68 from Boeing and 43 from Airbus — and that deal was worth $10.8 billion. The order was placed in 2005.
On 27 January, when the Tata Group completed the first year of taking over Air India, the airline said it was "finalising a historic order of new aircraft to power future growth.
The airline has put in place a roadmap under Vihaan.AI for transformation over the next five years and has taken various measures, including committing $400 million to refurbish the interiors of its entire wide-body fleet.
