Air India To Buy 250 Aircraft From Airbus In Historic Deal
This is the first aircraft acquisition by Air India, after it was taken over by Tata Group last year. The order is reportedly part of a bigger deal of around total 500 aircraft, where rest of the planes will be delivered by U.S.-based Boeing, making it the biggest such deal in the commercial aviation’s history.
The deal is another huge step in a series of decisions to overhaul the airline’s operations and make it a strong competitor in both international and domestic markets.
A younger and more fuel-efficient fleet will allow the company to compete with local low-cost rivals like IndiGo, and Gulf giants, such as Emirates or Qatar Airways, in the international markets.
The former national carrier has already announced plans to merge AirAsia India and Air India Express to form a low-cost carrier AIX Connect Pvt., while Vistara will combine with Air India to form a bigger full-service carrier.
The airline has committed $400 million to refurbish the interiors of its entire wide-body fleet. It will also establish an information technology centre and a training academy to ensure efficient operations.