Air India order for 470 jets at a list price of $70 billion

Air India, owned by the Tata Group, has announced a record order of 470 aircraft from Airbus and Boeing Co, with a list price of $70 billion. This is an immense step forward in the company’s expansion of long-haul international operations. The provisional deal consists of 220 planes from Boeing and 250 from Airbus, making it the largest order ever placed by a single carrier. CEO Campbell Wilson stated that this order is an important milestone for the airline.

Air India, a once world-class airline in India, had its image marred in the mid-2000s due to financial troubles, an aging fleet, and subpar service. In order to turn this situation around, the airline plans to fund a historic order of new aircraft to transform its fleet and enable significant network and capacity expansion. This will be done through a combination of internal cash flow, shareholder equity, and sale-and-leaseback of aircraft, as stated by Wilson during a press conference.

Air India, under the Tata conglomerate, is undergoing a major transformation in aviation history. With the growth of India’s fliers and large diaspora across the world, the airline is actively hiring 500 cabin crew each month, with a total of 4,200 cabin crew and 900 pilots. This is to capitalize on the potential of India’s aviation industry. However, Air India is unlikely to pay the final price of $70 billion for the list price..

Overall, the Air India order for 470 aircraft is a significant development for the airline, as well as for Boeing and Airbus. It represents a major investment in the future of air travel, and will help to improve connectivity and economic growth around the world.

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