The new Air India seeks to retake 30% of domestic and international operations as part of TATA’s historic decision to acquire nearly 500 new aircraft.
One of the biggest ever aircraft orders has been completed by Air India. As of right now, the airline has committed to buying nearly 500 new aircraft, including 250 Airbus, split between 210 single-aisle A320neos and 40 widebody A350s. 220 aircraft were ordered from Boeing, including 20 787s, 190 737 MAX jets (narrowbody and widebodies), and 10 777Xs.
On January 27, Boeing completed the order’s component. Air India did not sign the agreement until Friday, February 10.
Objectives of a New and Modern Air India
The purchase is a crucial component of the airline’s major plan, which entails updating Air India’s outdated aircraft while concentrating on increasing its market share to overseas locations. With India’s sizable population and vast overseas diaspora, the airline hopes to reclaim local customers who commonly fly with Middle Eastern airlines like Emirates and Qatar Airways.
According to the stated price, the deal will be worth more than $150 billion. Over the following eight years, deliveries are anticipated.
Confronting the domestic market
Air India intends to compete with IndiGo, a local rival that dominates domestic operations, by using the 400 narrowbody aircraft that are part of the deal. In an effort to improve the airline’s reputation, Air India’s most recent order ensures its place in the elite club.
two airlines from four
Air India Express and AirAsia India will merge as part of TATA’s plans to establish a major Indian low-cost carrier, with the most recent purchase of 190 Boeing 737 MAX aircraft expected to be a key component of this enterprise. TATA wants to shake up the Indian aviation market and reclaim up to 30% of the market.
In the meantime, Vistara and Air India will merge and aim to control global operations. This area of the firm handles all of its widebody orders (40 x Airbus A350, 20 x Boeing 787, and 10 x Boeing 777X). The remaining Airbus A320neo aircraft are also expected to fly short-haul international routes for the redesigned airline.
Under the direction of TATA
With the ongoing infusion of capital by conglomerate TATA, the airlines have experienced a 27% rise in utilized aircraft over the past year, which is now sitting at 100. Campbell Wilson, MD/CEO of Air India, offered the following insight on recent operations:
“Weekly international services have climbed 63% while daily flight numbers have increased by 30%. Nine existing routes have seen an increase in frequency, and sixteen new foreign routes have either already begun or have been announced for soon-to-be-launched service.
The number of average daily visitors has increased by 72%, and daily revenue has doubled. 81% of the time on average per day. This is a historic order given the frail past of AI. Air India last made a deal in 2005 for 111 aircraft, including 43 from Airbus and 68 from Boeing, with the potential of being the first Indian airline to fly the Airbus A350s. This revitalization is long overdue because the deal’s projected value at the time was $10.8 billion