Tuesday, January 21, 2025
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Air India eyes strategic expansion through 100 Airbus orders

The order comprises 10 widebody A350 and 90 narrowbody A320 family jets

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NEW DELHI: Air India has placed an order for an additional 100 Airbus aircraft, comprising 10 widebody A350 and 90 narrowbody A320 family jets.

The announcement marks an important step in the airline’s ongoing expansion strategy, which began in earnest following the Tata Group’s acquisition of the airline in 2022.

The latest order is particularly notable as it builds upon a substantial previous commitment made by Air India. Just last year, the carrier had already placed orders for 470 aircraft across both Airbus and Boeing, including 250 jets from Airbus and 220 from Boeing.

These decisions reflect a concerted effort by the Tata Group to modernise and upgrade Air India’s fleet, improve operational efficiency, and ultimately enhance service quality for passengers.

Meeting future demands

The consolidation of orders illustrates Air India’s intention to strengthen its market position within the increasingly competitive landscape of Indian aviation. With options for 70 more Boeing jets and a large portfolio of purchase rights, the airline demonstrates a strategic capability to adapt its fleet to meet future demands.

Moreover, the acquisition of new aircraft is complemented by a broader initiative to revamp the airline’s branding and operational framework. This includes not only the introduction of a modern logo and livery but also significant upgrades to the interiors of over half of its fleet. Such initiatives signal a commitment to establishing Air India as a leading global airline.

The merger with Vistara, a joint venture of Tata Group and Singapore Airlines, further reinforces this strategy. By integrating Vistara’s strengths with its own, Air India is poised to offer a more robust service network, catering to both domestic and international travelers.

While the exact financial details of the latest Airbus order remain undisclosed, the implications for Air India are clear. The investment is a testament to Tata Group’s confidence in the airline’s growth trajectory and reflects broader trends in the aviation sector towards fleet modernization and capacity expansion.

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