GURUGRAM- Tata Group-owned Air India (AI) is in advanced talks with Airbus and Boeing for a potential order of around 200 additional narrow-body aircraft, according to Reuters sources. The move aims to reinforce the carrier’s fleet growth strategy from its base at Indira Gandhi International Airport (DEL).
Following its record-breaking 2023 procurement, the airline is pushing ahead with a multi-billion-dollar modernization plan to reclaim market share in the highly competitive Indian aviation sector.
Air India New Narrow-Body Order
Air India’s renewed engagement with Airbus and Boeing signals its ambition to expand domestic and regional capacity using single-aisle aircraft. The talks are part of a broader strategy that also involves evaluating additional wide-body aircraft for long-haul operations, two sources told Reuters.
Although specific figures remain under discussion, the narrow-body segment alone could involve about 200 aircraft.
This fresh order would add to the 470 aircraft Air India committed to in 2023, which included 250 jets from Airbus and 220 from Boeing. That deal was the largest single aircraft order in aviation history.
It was further supplemented by another 100-jet agreement with Airbus in late 2023, pushing the total order book to 570 aircraft.
The timing of the renewed discussions coincides with a major aviation summit in India, where Prime Minister Narendra Modi addressed industry stakeholders. Air India, along with Airbus and Boeing, declined to publicly comment on the negotiations.
Air India’s fleet renewal is critical to correcting years of stagnation under its former government ownership.
CEO Campbell Wilson highlighted that while new narrow-body deliveries are expected this year, a portion of the airline’s wide-body fleet, particularly Boeing 787s and 777s, is undergoing retrofit upgrades, temporarily limiting international growth.
Despite these constraints, the airline sees the addition of narrow-body jets as a lever for growth in domestic and short-haul international markets.
These aircraft form the core of most global commercial operations and are essential to meeting the rising travel demand in India, now the fastest-growing aviation market globally.
Current Fleet
Air India currently operates 198 aircraft, including assets from its merger with Vistara. Its low-cost subsidiary, Air India Express (IX), operates 103 aircraft—38 of which are new Boeing 737 MAX jets from an October 2023 order. An additional nine 737s are scheduled for delivery by June 2025.
However, supply chain disruptions and production bottlenecks at both Airbus and Boeing continue to impact delivery timelines. CEO Wilson stated that shortages are likely to persist for at least 4–5 years, affecting overall fleet expansion.
Still, the airline’s strategic focus remains clear: prioritize narrow-body growth to restore its competitive edge across India and key regional markets.
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