Air India’s Massive New Order

Air India is edging closer to placing a significant new aircraft order from Airbus and Boeing, with discussions ongoing.

Sources close to Reuters reported that the purchase could include up to an additional 300 aircraft, featuring not only single-aisle but also widebody aircraft types, to elevate the company’s already strong backlog.

As part of the prospective new contract, as many as 100 new widebody aircraft could be included, with the bulk of the fresh order likely to be for single-aisle jets; the direction in which the flag carrier chooses to head remains to be determined.

Air India already has strong commitments to most available widebody and single-aisle aircraft; therefore, whatever is purchased would be broadly considered a strengthening of an existing backlog.

Airbus and Boeing, now involved in the discussions, will be putting their best foot forward to try and secure the bulk of the lucrative contract for the rebuilding of Air India, which, under new ownership, believes that these new purchases will be directly tied to a rebound in customer satisfaction levels and to achieve growth.

The new order will likely not just focus on replacement efforts of existing aircraft that will continue to age as the 2030s roll in, but also allow for growth, with demand increasing tenfold to and from India. Air India aims to be prepared and ensure it has sufficient capacity to meet demand over the next decade.

By bolstering commitments to programs from Airbus and Boeing, a consistent stream of deliveries will be achieved, a requirement for flag carriers as delivery slots are snapped up and airlines attempt to ensure they will not lack capacity by the turn of the next decade.

A New Beginning For Air India

Once followed through on, a new aircraft purchase by Air India will represent one of the many significant investments made since the Tata Group took back control of the flag carrier, which has suffered considerable damage.

What is now widely regarded as one of the rebuilds of our generation, the Tata Group has been tasked with overhauling the bruised flag carrier, which, over many decades, has seen its public perception decline dramatically.

While new aircraft purchases have been the centre point of the new era, there have also been many more iniaitives launched, visible through new cabins, a new livery, airport and staffing changes.

For example, Air India is heavily committed to retrofitting its interiors in a bid to align more closely with its competition, as the airline realises it has been falling behind other airlines in its interior offerings, and therefore change is required; this is no cheap task.

Despite this, and the investment that has already arrived and continues to do so, it remains an uphill battle to fully turn around the business’s fortunes, which some would consider beyond repair after such high levels of neglect.

New ownership is hopeful that the investments will pay off. However, the reality is that systemic issues also need to be resolved, beyond just new aircraft and cabins, to ensure these changes can be maintained.

As emerging competition, such as IndiGo, which will operate wide-body aircraft, arrives, and others also pose a threat to Air India’s market share, the turnaround isn’t guaranteed. However, for this flag carrier, there remains no other option but to succeed in its endeavours to survive.

2025 has been a year of ups and downs, with the negatives exacerbated by a fatal accident and subsequent questions from pilot unions regarding the safety of Boeing 787 Dreamliner jets. However, the Tata Group remains committed to rectifying the wrongs, increasing transparency, and prioritising safety.