90 planes set to board Air India fleet in 2 years

The Tata group-owned Air India will induct over 90 aircraft in two years as it looks to widen its footprint and grab a larger market share.

The plan includes 56 planes from the mega aircraft order that the airline has now finalised with Airbus and Boeing.

These will be in addition to previously announced leases of 36 planes that include Airbus A320Neo, A321Neo, and Boeing 777 aircraft.

Currently, Air India has 115 aircraft; its last aircraft order was announced in 2006.

At a group level, the Tata group airlines (including Air India Express, AIX Connect, and Vistara) operate around 220 planes.

Air India has ordered around 470 planes, which include a mix of narrow-body and wide-body Airbus and Boeing planes that will serve both domestic, medium-haul, and long-haul routes.

These planes shall be delivered to the airline in 7-10 years.

A formal announcement will be made this week.

A source said Air India has selected 190 Boeing 737 Max, 20 Boeing 787,s and 10 777X planes.

The Airbus order will comprise 210 A320Neo and 40 A350 planes.

Additionally, Air India will have options and purchase rights for over 300 planes.

Options and purchase rights are not the same as confirmed orders and need to be exercised by an airline in order to avail the aircraft.

Air India and Boeing did not respond to an e-mail sent on Saturday.

Airbus said it does not comment on confidential discussions with customers.

Deliveries will begin this year. A person aware of the order said the airline will start receiving the 737 Max aircraft immediately.

Deliveries of six Airbus A350 planes are also expected to start in September and should be completed within a year.

In the next two years, Air India will induct around 50 737 Max planes that form part of the order.

Deliveries of the rest 34 Airbus A350 aircraft and Boeing 787s are expected from 2025; Airbus A320Neo planes will start joining the airline from 2026 onwards, it is learnt.

Initially, the airline plans to densify its existing network; it plans to add many more destinations as part of its aim to achieve a 30 per cent market share in the domestic and international markets in the next five years.

Some of the changes are already visible with Air India adding services from Mumbai to New York and San Francisco -- two routes previously served only from Delhi.

The process of developing a fleet and network plan for Air India has been going on even before the Tatas boarded Air India last January.

Performance evaluation of each aircraft was carried out based on its long-term network plans before making a choice.

This included examination of aircraft fuel consumption, maintenance, payload, etc.

Negotiations with OEMs, including engine makers CFM, GE and Rolls-Royce, have been going on for over a year.

Both aircraft and engine orders have been finalised simultaneously.

The signing of aircraft and engine contracts is said to be crucial as the airline has got a pricing advantage.

Also, the airline management has better visibility over the entire life cycle cost of the aircraft, a source said.

“Within a year of Air India's takeover, the Tata group has finalised the mega order.

"The group has taken a strategic and long-term view of the aviation business and this is backed by capital commitments.

"Old planes are being retired and contracts have been signed for the refurbishment of the existing fleet.

"New routes are being launched. The speed and scale show the group’s ambitions,” said a Tata group watcher.