Air India Orders 540 Planes with Boeing and Airbus, Engraves Aviation History

After an event with French President, PM Modi holds a telephone talk with U.S. President Joe Biden; leaders term the Air India-Boeing deal as a "shining example” of mutually beneficial cooperation.

With its announcement of 540 aircraft purchases from Boeing (BA: NYSE) and Airbus, Air India Ltd. has made aviation history with the largest airline order in history. In addition to the confirmation of 290 Boeing planes, the 250 Airbus planes were announced at an internet event attended both by French President Emmanuel Macron and Indian Prime Minister Narendra Modi.

President Biden praised the Air India-Boeing agreement as it demonstrated the strength of the bilateral economic relationship. Air India and Boeing have signed a historic deal that will result in the purchase of more than 200 aircraft built in the United States. This underlines the robustness of the economic ties between the United States and India. The relationship between Biden and Prime Minister Modi will be further enhanced as they address common global concerns for a more prosperous and secure future for all.

During a telephonic conversation with Biden, PM Modi described the historic deal between Air India and Boeing as a shining example of mutually beneficial cooperation, which will help create both employment and foster economic growth. The PM also invited Boeing and other American businesses to take advantage of the opportunity created by India's developing civil aviation industry.

The Air India-Boeing agreement includes an order for 190 737 MAX, 20 787 Dreamliner, and 10 777X aircraft that are all fuel-efficient. The transaction includes options for 20 787-9s and 50 more 737 MAXs. Besides being Boeing's largest order in South Asia, the order will mark the aerospace company's nearly 90-year partnership with the airline as well.

Air India is undergoing a significant transition in terms of safety, customer service, technology, engineering, network, and human resources. A key element of this transformation is a modern, effective fleet. This order is a crucial step in realizing Air India's vision to provide a world-class offering serving international travelers with an Indian heart, which was expressed in its Vihaan.AI transformation initiative. The new aircraft would significantly increase Air India's network while updating its fleet and onboard amenities. The agreement is also anticipated to open up a lot of job options for Indian aviation experts. Air India remarked that the first of the new planes would start flying in late 2023, with the majority following in the middle of 2025. Meanwhile, to grow its network, Air India has already begun taking delivery of 25 A320 and 11 B777 aircraft that were leased.

Air India's decision to fly Boeing's family of passenger jets shows their trust in their products and services in the world's fastest-growing aviation market. With the 737 MAX, 787 Dreamliner, and 777X's industry-leading fuel economy, the company is well positioned to achieve its development objectives and become a world-class global airline with an Indian heart. The 737 MAX would provide flexibility across Air India's domestic and international network while consuming 20 percent less fuel and emitting 20 percent fewer emissions than the aircraft it will replace.

To expand its domestic and international operations, Air India announced the purchase of 250 Airbus aircraft, including 34 A350-1000 and six A350-900 wide-body aircraft, as well as 140 A320neo and 70 A321neo single-aisle aircraft. The introduction of brand-new, long-range aircraft in the Indian market, will usher in a new era for India. These new aircraft will be significant in delivering Vihaan, and Airbus and Air India have been partners for a long time.

The travel demand is anticipated to increase significantly as India's economy continues to grow quickly, forcing airlines to expand their fleets. Reports from aviation consulting and research firm CAPA India states that Indian carriers will order 1,500–1,700 aircraft over the next 24–plus months because the Indian market is drawing attention from around the world as arguably the most promising aviation market in the post–COVID era.