(Commonwealth_India) Air India is currently in talks with Boeing and Airbus to secure a significant order for widebody jets, potentially worth billions of dollars. These talks aim to enhance the airline’s long-haul fleet, an important step in the company’s broader transformation under the ownership of the Tata Group. The deal, still in the negotiation phase, involves the acquisition of 30 to 40 widebody aircraft, with models like the Airbus A350 and Boeing 777X being considered. However, sources close to the matter have suggested that the final deal could include more than 50 jets, though the specifics are still being finalized. The outcome of these discussions is expected to become clearer closer to the Paris Air Show, set to take place in June.
This potential expansion is set to build on Air India’s existing fleet modernization strategy, which already includes a massive 2023 deal for 470 aircraft from both Boeing and Airbus, alongside another 100 Airbus jets ordered the previous year. While most of these planes are narrowbody jets, the current talks for widebody aircraft are particularly significant as they align with Air India’s global ambitions, especially given the increasing demand for international travel from India.
As part of its previous orders, the airline already has 50 Airbus A350s, 10 Boeing 777X aircraft, and 20 Boeing 787 Dreamliners on its order books. The addition of more widebody jets would enable Air India to expand its international routes, particularly long-haul services, to meet growing demand. This expansion is timely, as international travel demand from India is expected to increase by 15–20% in the current financial year, according to ratings agency ICRA. In comparison, domestic travel growth is projected to be slower, with an anticipated growth rate of 7–10%.
However, while the growth potential is clear, Air India faces several challenges in executing its plans. One of the primary obstacles is the global shortage of aircraft, which has led to significant delivery delays. The airline industry is currently grappling with the effects of high demand and supply chain disruptions that have impacted the production of large aircraft. These constraints have been particularly problematic in the delivery of key components such as engines, fuselage materials, and business class seats. As a result, Air India has had to continue operating some of its older aircraft, which has slowed the progress of the airline’s transformation strategy under the Tata Group’s ownership.
The competition in the global aviation market is also intensifying. Air India is working hard to regain the market share it lost to international carriers such as Emirates, Lufthansa, and Turkish Airlines, which have gained a strong foothold by attracting Indian travelers with their newer fleets and superior premium cabin services. Currently, Indian airlines account for approximately 43–44% of outbound international passenger traffic from India, with foreign carriers continuing to dominate this segment.
Despite these challenges, Air India is pushing ahead with its expansion efforts. The airline and its low-cost subsidiary, Air India Express, are expected to receive about 20 new narrowbody and widebody aircraft this year, according to UK-based consultancy Cirium Ascend. This influx of new planes will help the airline strengthen its position in the competitive international aviation market. Nonetheless, the delivery delays and production bottlenecks faced by the aviation industry as a whole will continue to present significant hurdles for Air India as it strives to execute its ambitious growth plans.
