Tata-owned Air India to buy 250 jets from Airbus, announces N Chandrasekaran

Tata-owned Air India has signed a deal to buy 250 aircraft from Airbus, group chairman N Chandrasekaran announced on Tuesday. The airline, which is on an expansion spree by starting operations on new routes, will buy 40 wide-body A350 planes and 210 narrow-body aircraft. The wide-body aircraft will be used for ultra-long flights.

"We have built a very good relationship with Airbus. Today I am happy to announce that we have signed a letter of intent to acquire 250 aircraft from Airbus," Chandrasekaran said during the launch of the new Air India-Airbus Partnership via video conference. 

Prime Minister Narendra Modi, French President Emmanuel Macron, Aviation Minister Jyotiraditya Scindia, and Airbus CEO Guillaume Faury attended the launch of the partnership. 

Last week, Reuters reported about the deal which it said could be the single largest order by any airline. Air India signed the deal with France-based Airbus on February 10, the report said. 

In January last year, Tata Group took control of Air India after winning the bid for Rs 18,000 crore. Ever since it acquired the airline, the Tata Group has taken a number of steps to corner a larger share of the aviation sector.

In September last year, Air India unveiled a multi-stage transformation roadmap - Vihaan.AI (which in Sanskrit signifies the dawn of a new era) - towards what it said becoming a world-class global airline. 

As per the plan, the airline over the next five years will strive to increase its market share to at least 30 per cent in the domestic market while significantly growing the international routes from the present market share. "The plan is aimed at putting Air India on a path to sustained growth, profitability, and market leadership," it had said while laying out the roadmap.

Commenting on the transformation plan, Air India MD and CEO Campbell Wilson said the airline's fleet expansion would involve a combination of both narrow-bodied and wide-bodied aircraft to cater to varied network needs.

In November, the Tata Group announced the merger of Vistara - a 51:49 joint venture between Tata Sons and Singapore Airlines - with Air India. With this consolidation, Air India became the largest international carrier and second largest domestic carrier after IndiGo with a combined fleet of 218 aircraft.