Air India eyes 200 narrow-body aircrafts in fresh talks with Airbus, Boeing: Report

NEW DELHI: Air India, owned by the Tata Group, is reportedly negotiating with Airbus and Boeing regarding a substantial aircraft acquisition, including approximately 200 additional narrow-body aircraft, supplementing their significant 2023 purchase as part of their extensive renovation programme, according to industry sources quoted by Reuters.The negotiations, which could encompass hundreds of aircraft across various categories according to two sources, build upon previously reported discussions concerning additional wide-body aircraft. Reuters sources indicate Boeing has gained an advantage in potentially supplying additional 777X aircraft.The possibility of another substantial order from India's national carrier emerged as aviation executives convened in India, the world's fastest-expanding aviation market, for a Delhi summit where Prime Minister Narendra Modi is scheduled to speak on Monday.In 2023, Air India had placed an unprecedented order for 470 aircraft from both manufacturers, followed by an additional 100 Airbus aircraft order. These consecutive orders coincide with manufacturers facing supply chain difficulties, resulting in significant delivery delays and aircraft shortages.The acquisition of new aircraft is essential for Air India, which experienced limited investment during government ownership.

The airline is currently implementing a comprehensive modernisation strategy to regain market share from international competitors.One of the sources indicated the potential narrow-body aircraft order involves 200 units, whilst two others suggested quantities in the hundreds. The timeline remains uncertain, with one source noting pricing negotiations could present challenges as Air India aims to secure terms comparable to IndiGo, which announced new partnerships and additional Airbus orders on Sunday.Also read: IndiGo confirms order for 30 more Airbus A350s, strengthens wide-body fleetSubstantial aircraft orders typically require months of confidential negotiations, with Boeing and Airbus components usually announced separately. India's aviation sector is growing at approximately 7% annually, according to Airbus projections. However, analysts note that inadequate infrastructure hampers growth, particularly regarding connectivity between smaller towns and major cities.Prior to the aviation conference in Delhi, the International Air Transport Association, representing 300 global airlines, indicated that Indian carriers were positioned for continued rapid expansion, while facing challenges from high fuel costs and taxation.