Air India is planning another multi-billion-dollar deal to expand its fleet with dozens of widebody jets from Boeing and Airbus. A report from Reuters revealed that the airline is in talks to purchase between 30 and 40 aircraft, including models such as the Airbus A350 and Boeing 777X. Some reports suggest the order could exceed 50 jets, but final details have yet to be confirmed.
The airline’s spokesperson declined to comment on the matter, while Boeing and Airbus also chose not to respond. However, one source indicated that more information could become available closer to the Paris Air Show in June.
The potential deal is part of Air India’s ongoing expansion under Tata Group’s ownership. Following years of challenges under state control, the airline is now working to modernize its fleet and regain market share.
The new widebody order would complement Air India’s previous large-scale acquisitions. In 2023, the airline secured a massive deal for 470 jets from Boeing and Airbus. The following year, it placed an additional order for 100 Airbus planes, although most were single-aisle models. The latest purchase aims to strengthen the airline’s capacity for long-haul routes, supporting its international growth strategy.
India’s outbound travel demand is rising sharply, making the expansion well-timed. According to ICRA, Moody’s local ratings agency, international passenger traffic from India is expected to increase by 15-20% in the current fiscal year ending March 31. This is significantly higher than the projected 7-10% growth for domestic travel.
Navigating Delivery Delays and Supply Challenges
Air India’s expansion efforts come amid industry-wide challenges caused by aircraft delivery delays. The airline is competing with other carriers for limited production slots as manufacturers struggle to meet demand. Airlines have already rushed to secure narrowbody jets, making widebody production slots even more scarce.
CEO Campbell Wilson recently warned that supply issues affecting engines, first and business-class seats, and fuselage parts will likely persist for at least four more years. As a result, the airline has been forced to keep some of its older planes in service longer than planned.
The delays have also impacted Tata Group’s five-year transformation plan for Air India, stretching the timeline as the airline waits for new aircraft deliveries.
Competing with International Rivals
Air India is working to strengthen its position against foreign carriers that dominate international routes from India. Competitors such as Emirates, Lufthansa, and Turkish Airlines continue to attract Indian travelers with newer fleets and better premium cabin products.
Despite Air India’s efforts, Indian carriers still handle only 43-44% of the country’s outbound passenger traffic, according to ICRA, leaving international airlines in the lead.
Despite delivery challenges, Air India and its low-cost subsidiary, Air India Express, are expected to receive around 20 narrowbody and widebody jets this year. This projection, based on data from UK consultancy Cirium Ascend, reflects the airline’s ongoing fleet expansion.
Air India’s widebody jet order marks another step in its journey toward modernization and market competitiveness. With Tata Group driving the transformation, the airline aims to rebuild its reputation and offer an improved travel experience for passengers.
