Air India has entered new talks with Boeing and Airbus about another possible aircraft order that could add around 200 narrow-body jets to its fleet. This comes as the airline continues a wide-scale modernization strategy under Tata Group ownership. The discussions could result in a deal covering hundreds of aircraft across different categories, according to people familiar with the matter.
This latest round of talks builds on earlier discussions for additional wide-body aircraft. In a report from Reuters, two sources said Boeing appears to be leading those talks for more 777X jets. Although neither Air India, Boeing, nor Airbus offered any comments, the possible deal would follow the airline’s major 2023 order for 470 aircraft from both manufacturers and another batch of 100 Airbus jets last year.
Tata Group has focused on improving Air India after years of underinvestment while it was owned by the government. The airline’s ongoing efforts to regain market share have included placing massive orders for new aircraft, which serve as a key part of its long-term strategy. A fresh order of 200 or more narrow-body planes would further support this plan as Air India aims to upgrade its fleet and enhance its services.
Global interest during India summit
Details of the new discussions surfaced as global airline leaders gathered in New Delhi, where Indian Prime Minister Narendra Modi is scheduled to speak at an industry summit. India remains the fastest-growing travel market, and the timing of the event has drawn attention to the country’s position in global air travel. Airbus predicts India’s domestic market will grow at an annual rate of around 7 percent. However, analysts note that limited airport and ground infrastructure still hold back some of this growth, especially in smaller cities.
On the eve of the summit, the International Air Transport Association, which includes 300 member carriers, stated that airlines based in India will likely continue growing quickly, although high fuel prices and taxes remain challenges for the market.
Aircraft delivery issues and deal timing
Airbus and Boeing both face supply chain challenges that have delayed aircraft deliveries across the world. These delays have made acquiring new jets more competitive for airlines trying to expand or renew their fleets. Air India, like many others, must work around these constraints.
Although the number of jets under discussion remains uncertain, one source said the narrow-body deal could include 200 aircraft. Two other sources suggested the total figure may reach into the hundreds. However, the timing of a final agreement remains unclear. Pricing has also emerged as a possible hurdle, especially as Air India looks to match recent deals made by IndiGo, India’s largest airline. On Sunday, IndiGo confirmed a new order for Airbus aircraft and additional partnerships, placing more pressure on Air India to act quickly.
Aircraft deals of this size typically involve months of private negotiations, with manufacturers often announcing their own portions of the orders separately. As the talks continue, Air India’s potential order could mark another major step in its modernization and fleet expansion plan.
Air India continues to focus on restoring its position through fleet upgrades and new aircraft orders. As discussions move forward, the airline aims to balance price, delivery schedules, and long-term growth.
