Air India seals record order for about 500 jets from Airbus, Boeing

A bird flies over a logo of Air India airlines at the corporate headquarters in Mumbai, India, Oct 19, 2021. REUTERS

Air India has sealed a jumbo deal for about 500 new planes worth more than $100 billion at list prices, in what could become the single largest order by any airline as it seeks to reinvent itself under its new owners, industry sources said.

The deal, split equally between France's Airbus and rival planemaker Boeing, was first reported in December and could finally be announced as early as next week, the sources said.

Air India has agreed to purchase 250 Airbus planes, split between 210 single-aisle A320neos and 40 widebody A350s, and 220 Boeing aircraft including 190 of its 737 MAX narrowbody jets, 20 787 widebodies and 10 777Xs.

While the Airbus figure is slightly lower than the 275 originally envisaged, the sources did not rule out a provision by Air India for top-up acquisitions or leases at a later point.

It was not immediately clear to what extent the numbers in the agreement included options that could change the total tally when the final orders are in.

The record order aims to put Air India in the league of large global airlines and make it an influential customer for planemakers and suppliers at a time when its home market is seeing a strong post-COVID-19 travel surge.

Air India, with its maharajah mascot, was once known for its lavishly decorated planes and stellar service but its reputation declined in the mid-2000s as financial troubles mounted.

Under its new owners, the airline is looking to restore its reputation at home and abroad as a storied carrier with impeccable service and world-class planes.