Air India a Tata-owned company hopes to place a new widebody order with Boeing and Airbus, according to a report

Air India is reportedly in discussions with both Boeing and Airbus regarding a substantial purchase of widebody aircraft, a move that could be valued in the billions and significantly enhance the airline’s long-haul fleet. This potential acquisition aligns with the airline’s ongoing transformation under the Tata Group’s ownership. Sources indicate that the talks involve securing 30 to 40 aircraft, including Airbus A350 and Boeing 777X models, with the possibility of the final deal surpassing 50 jets. While no concrete decisions have been made yet, clarity on the order is expected around the Paris Air Show in June, as suggested by insiders familiar with the matter.

Should the deal materialize, it would add to Air India’s already massive 2023 order of 470 aircraft from both manufacturers, as well as the additional 100 Airbus jets purchased last year. The previous orders predominantly included narrowbody planes, making the potential acquisition of more widebody jets a crucial step in strengthening the airline’s global operations. Currently, Air India has 50 Airbus A350s, 10 Boeing 777Xs, and 20 Boeing 787 Dreamliners on order from its earlier agreements. This expansion comes at a time when international air travel demand from India is surging. Ratings agency ICRA predicts a 15-20% rise in international passenger traffic in the current financial year, whereas domestic travel is expected to grow at a comparatively slower rate of 7-10%.

The competition for securing widebody aircraft is intense, with airlines worldwide vying for early delivery slots amid constrained production capacity. A surge in demand for large aircraft has led to a backlog in deliveries, as several fast-growing carriers, including India’s largest airline, IndiGo, have already placed significant orders for narrowbody planes. Despite Air India’s aggressive expansion strategy, the airline continues to grapple with delivery delays, a challenge that CEO Campbell Wilson acknowledges could persist for at least four more years. Global supply chain issues affecting crucial aircraft components such as engines, fuselage materials, and premium cabin seats are contributing to these setbacks. Consequently, Air India has had to continue operating some of its older aircraft, impacting the Tata Group’s five-year revitalization plan for the airline.

The airline’s broader objective is to reclaim its share of the international market, which has increasingly been captured by global carriers such as Emirates, Lufthansa, and Turkish Airlines. These competitors have attracted Indian travelers with modern fleets and superior premium cabin services. At present, Indian airlines collectively handle around 43-44% of outbound international passenger traffic, while foreign carriers continue to dominate the sector, as per ICRA data. In a bid to reinforce its market presence, Air India, along with its low-cost subsidiary Air India Express, is set to take delivery of around 20 new narrowbody and widebody aircraft this year, according to UK-based aviation consultancy Cirium Ascend.