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Home Business & Finance

Tata’s Air India in talks with Boeing and Airbus to get new planes

Air India announced in September that it would lease 30 Boeing and Airbus planes, increasing its fleet by more than 25 percent as part of an effort to increase market share and improve service levels.

News Insider's Desk by News Insider's Desk
November 19, 2022
in Business & Finance
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New Delhi: Tata Group-owned Air India is in talks with Boeing and Airbus about ordering new planes, and the airline is meeting its immediate needs by leasing planes and repairing grounded planes, according to the airline’s CEO on Saturday.

According to industry analysts, the auto-to-steel conglomerate, which completed its purchase of Air India in January, faces an uphill battle to upgrade an ageing fleet, turn around the company’s finances, and improve service levels.

“We are in advanced discussions with Boeing, Airbus, and engine manufacturers for a historic order of the latest generation aircraft that will power Air India’s medium- and long-term growth,” said Campbell Wilson, the airline’s CEO, at a Tata corporate event in Mumbai.

Wilson stated that Air India intends to expand its fleet and global network over the next five years, with the goal of increasing its market share to 30 percent on both domestic and international routes.

Air India has 10 percent domestic and 12 percent international market share

According to industry estimates, Air India currently has a domestic market share of about 10 percent and an international market share of about 12 percent.

Air India announced in September that it would lease 30 Boeing and Airbus planes, increasing its fleet by more than 25 percent as part of an effort to increase market share and improve service levels.

According to industry sources, Air India was getting closer to a decision on a $50 billion at list price order that would be split between Airbus and Boeing in July.

Both planemakers were said to be making a “final push” at the time, with the order set to include up to 70 wide-body jets, including Airbus A350s and Boeing

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