After months of speculation, Air India has finally confirmed its massive airplane order and revealed details of its planned future fleet. Totaling 470 aircraft and split between both Boeing and Airbus models, the order includes a placement for 10 Boeing 777X widebodies. This makes Air India the 11th named customer for the brand-new, yet-to-be-certified Boeing aircraft.

The announcement comes at a period of significant redevelopment for Air India under its new parent Tata Group. Alongside its general image alterations, the order will completely redevelop the carrier’s aging fleet, currently comprised of Airbus narrowbodies and some Boeing 777s and 787s.

Photo: Carlos Yudica / Shutterstock

The Airbus order

After several months of negotiations, Tata Group CEO N Chandrasekaran confirmed during an online briefing that the airline had signed a letter of intent to purchase the aircraft. As reported by Bloomberg, the briefing was attended by industry and government officials, including Indian Prime Minister Narendra Modi and French President Emmanuel Macron.

Air India’s order, estimated to be worth around $34 billion based on market value, will add 210 A320neo narrowbodies for its short and medium-haul operations, along with 40 A350s. The order breaks down to 70 A321neos and 140 A320neos, plus six A350-900s and 34 A350-1000s. The A350s will be the first Airbus widebodies in the Indian fleet.

Photo: Airbus

Alongside supporting India’s aviation industry, the deal is set to strengthen the “strategic partnership” between India and France, with Modi and Macron celebrating the announcement as a significant milestone in both countries' relationships. Airbus CEO Guillaume Faury added,

“We are very proud that the Tata Group has chosen the A350 and the A320neo to script Air India’s revival. The magnitude of the order demonstrates the appetite for growth in the Indian aviation industry."

The Boeing order

Shortly, President Biden will announce the Boeing part of the deal, which totals firm orders for 220 aircraft. These are split between 190 Boeing 737 MAX, 20 Boeing 787s, and 10 of the new 777X airplanes. Air India, therefore, becomes the 11th named customer for the 777X, following in the footsteps of Emirates, ANA, British Airways, and others. A 12th unidentified customer exists on Boeing's order books. The firm order from Air India is valued at $34 billion at list prices.

Photo: Boeing

Alongside the firm orders, Air India has secured options for an additional 70 airplanes, including 50 737 MAX and 20 787s, putting the entire order value at $45.9 billion. The order is the third-largest sale for Boeing of all time in value, and the second-largest in terms of aircraft numbers. President Biden issued a statement on the order, saying,

"The United States can and will lead the world in manufacturing. I am proud to announce today the purchase of over 200 American-made aircraft through a historic agreement between Air India and Boeing. This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree.

"This announcement also reflects the strength of the U.S.-India economic partnership. Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges—creating a more secure and prosperous future for all of our citizens."

Photo: Boeing

The announcement comes on the heels of the launch of the US-India initiative on Critical and Emerging Technology (iCET) last month, which looks to expand the strategic technology partnership and defense industrial cooperation between the two nations. The US says that, as part of Biden's overall economic plan, this order will deliver a whole-life value of $70 billion of economic impact, and will support an estimated 1.47 million jobs.

What are your thoughts on Air India’s huge order? Let us know in the comments.

Sources: Bloomberg