DELHI- Tata Group-owned Air India (AI) is in advanced discussions with Airbus and Boeing to acquire up to 100 additional wide-body aircraft, expanding its ongoing fleet renewal and international growth plans.
The new negotiations, reported by Reuters, build upon earlier discussions for 200 narrow-body and 25–30 wide-body jets, potentially taking the total deal size to around 300 aircraft. The move signals Air India’s continued push to modernize its fleet and strengthen long-haul operations from hubs like Delhi (DEL) and Mumbai (BOM).
Air India New Order for 300 Aircraft
The airline’s latest talks with Airbus and Boeing include as many as 80–100 wide-body aircraft, supplementing previous plans and reaffirming its ambition to become a major global carrier.
These aircraft are expected to replace older planes and enable wider route expansion across Europe, North America, and Asia-Pacific.
In June, Reuters reported similar discussions that involved 200 additional narrow-body jets, following Air India’s record order of 470 aircraft placed in 2023. This new phase of negotiations highlights the airline’s intent to scale operations under its five-year transformation strategy.
Industry analysts suggest that such a large acquisition would position Air India among the world’s fastest-growing full-service airlines, enhancing its ability to compete with established global carriers. However, details about whether all aircraft will be firm orders or include purchase options remain unclear.
Financial Support for Fleet Modernization
Air India’s leasing arm, AI Fleet Services IFSC Limited (AIFS), based in GIFT City, Gujarat, secured a $215 million loan from Standard Chartered and Bank of India to finance six Boeing 777-300ER aircraft.
The seven-year amortizing term loan will help lease these wide-body jets to Air India, supporting its fleet expansion strategy. Standard Chartered acted as the structuring bank, with both lenders jointly underwriting the transaction as mandated lead arrangers and bookrunners.
Executives from both banks noted that the financing underscores India’s growing presence in global aircraft leasing markets, with GIFT City emerging as a key aviation finance hub.
Expanding Routes and Seasonal Capacity
Separately, Air India announced a significant network expansion with 174 additional weekly flights during the winter schedule starting 26 October. The added capacity focuses on high-demand domestic routes and short-haul international destinations.
Flights between Delhi (DEL) and Kuala Lumpur (KUL) will increase from seven to ten per week from 15 November, while services between Delhi (DEL) and Denpasar, Bali (DPS), will also rise to ten weekly flights from 1 December.
The airline said the move aims to meet rising travel demand and improve connectivity across India and Southeast Asia. Many of these aircraft now feature a three-class configuration — Business, Premium Economy, and Economy — aligning with the carrier’s ongoing product upgrade.
Currently, Air India operates 187 aircraft from both Airbus and Boeing families. The airline stated that these expansions reflect its broader effort to reposition itself as a modern, world-class airline under Tata Group’s ownership.
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