Air India has ordered 100 more Airbus aircraft, adding to its previous order of 470 planes placed in 2023. The new order includes 10 widebody A350s and 90 A320 Family aircraft, primarily A321neos, taking Air India’s total Airbus orderbook to 344 aircraft.
Order Details and Financial Impact
The latest expansion comes as Air India continues its transformation under Tata Group ownership. The airline has already received six A350s from its previous order. While financial details remain undisclosed, this order follows Air India’s $70-billion commitment for 470 aircraft in 2023.
“With India’s passenger growth outpacing the rest of the world, its significantly improving infrastructure and an aspirational young population increasingly going global, we see a clear case for Air India to expand its future fleet,” said Natarajan Chandrasekaran, Chairman of Tata Sons and Air India.
Technical Specifications and Environmental Considerations
The A350s offer 25% better fuel efficiency and CO₂ reductions compared to previous generation competitor aircraft, with 50% less noise pollution. The A321neo brings 20% fuel savings and CO₂ reductions, and brings 50% noise reductions, featuring the widest single-aisle cabin currently available.
Maintenance and Operational Strategy
Air India has selected Airbus’ Flight Hour Services-Component (FHS-C) for A350 fleet maintenance, securing:
- Comprehensive engineering services
- Integrated component services
- On-site stock at Delhi
- Access to Airbus’ regional spares pools
Market Context and Industry Position
Indian carriers now have approximately 1,300 aircraft on order, scheduled for delivery until the mid-2030s. India ranks as the world’s third-largest aviation market, with considerable growth potential due to low air travel penetration.
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Industry Context
Under government control, Air India faced financial stress that limited fleet expansion and modernization. The Tata group aims to transform the airline into a carrier of global repute through fleet expansion, network growth, and product improvement.
Guillaume Faury, Airbus CEO, stated: “Having personally witnessed the formidable growth of the Indian aviation sector in recent months, I am glad to see Air India renew its trust in Airbus with this additional order for both our A320 Family and A350 aircraft. Through this continued partnership, we are committed to supporting the success of Air India’s ‘Vihaan.AI’ transformation plan under Tata’s vision and leadership.”
Delivery Timeline
The new aircraft deliveries are expected to begin in 2025. Air India’s order of 470 aircraft from last year included options to acquire up to 370 additional aircraft, with purchase options allowing carriers to buy additional planes at previously agreed-upon prices and schedules.