NEW DELHI: Tata Group-owned Air India on Tuesday said it will buy a total of 470 wide-body and narrow-body planes from Airbus and Boeing, and the total deal value is estimated to be USD 80 billion (around Rs 6.40 lakh crore) as the airline expands its operations.
"The order comprises 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9s wide-body aircraft, as well as 210 Airbus A320/321 Neos and 190 Boeing 737 MAX single-aisle aircraft.
The A350 aircraft will be powered by Rolls-Royce engines, and the B777/787s by engines from GE Aerospace.
All single-aisle aircraft will be powered by engines from CFM International," the airline said in a statement.
According to Air India, the first of the new aircraft will enter service in late 2023 and the bulk of the planes are to arrive from mid-2025 onwards.
The airline will purchase 210 narrow-body A320neo jets and 40 long-haul A350 aircraft in an ambitious plan to capture domestic market share and fashion Indian airports into global travel hubs.
"We are going through a massive transformation," said Air India chairman N Chandrasekaran, announcing the deal with French President Emmanuel Macron and Indian Prime Minister Narendra Modi in virtual attendance. "One of the most important things is a modern fleet which can perform for all routes."
'One of the largest single aircraft orders'
Air India chief Campbell Wilson said the order for 470 planes is one of the largest single aircraft orders by any airline, anywhere, ever, and that the carrier has secured a number of options and purchase rights.
"In the meantime, our capacity growth will continue to be supported by the previously announced lease-in of additional narrow-body and wide-body aircraft and the restoration-to-service of the remainder of our grounded fleet," he said.
In addition to the 470 aircraft on firm order, Air India has secured a number of options and purchase rights.
"These give us the option, but not the obligation, to take additional aircraft at already-negotiated production slots and/or prices so that we can nimbly accommodate further growth and manage risk," he said.
Air India has signed letters of intent with Boeing, Airbus, Rolls-Royce, GE Aerospace and CFM International for a fleet of brand-new aircraft.
"Besides this deal being of unprecedented size, it was also incredibly complex, with two airframers and six engine suppliers all jostling for position," the Air India chief said.
Rolls-Royce engines
Meanwhile, aircraft engine maker Rolls-Royce on Tuesday said it has received an order from Air India for 68 Trent XWB-97 engines and there is also the option to supply 20 more such engines.
This is the biggest ever order for such engines, which exclusively powers the Airbus A350-1000, it said.
Air India has also ordered 12 Trent XWB-84 engines, the sole engine option for the Airbus A350-900, the engine maker said in a statement.
This is the first time that an Indian airline has ordered the Trent XWB and the deal will make Air India the largest operator of the Trent XWB-97 in the world, Rolls-Royce said without disclosing financial details of the order.
"Air India is the first Indian airline to order the Trent XWB and the size of the commitment, including options, will make them the biggest operator of the Trent XWB-97 in the world," Tufan Erginbilgic, CEO of Rolls-Royce plc, said.
With a dynamic and growing aviation industry, India is a strategically important market for Rolls-Royce and "we look forward to working with Air India as they connect their passengers across global communities and cultures", he said.
According to the statement, the Trent XWB will support Tata Group and Air India's ambitious growth plans for the airline, providing reliability, flexibility and efficiency to its fleet as it takes on ultra-long-range routes between India and the US.
It also said the size of the Air India order reflects the increasing demand for air travel in India, which now has the third biggest airline market in the world and is ranked as the fifth largest economy globally.
Air India was founded by Tata Group in 1932 and the Indian government bought a majority stake after independence.
But by the end of the century, the venture was struggling to compete with Gulf carriers and no-frills airlines, starved of investment and racking up billions of dollars in losses that dragged on the public purse.
Tata -- also chaired by Chandrasekaran -- finally bought it back in a $2.4 billion deal a year ago.
"Today is a historic moment for India, for Air India and for Airbus," said Airbus chief executive Guillaume Faury.
"The magnitude of the Air India order... demonstrates the appetite for growth in the Indian aviation industry," he added.
Air India remains the country's largest international carrier, but its domestic market share stood at only 8.6 percent in September.
The carrier is aiming to take a 30 percent domestic share by the end of 2027 while expanding its fleet to cover more international routes.
"According to several estimates, India will need over 2,000 aircraft in the next 15 years," said Modi. "This historic announcement will help in catering to this increasing demand."
Macron said the deal highlighted the bond between Paris and New Delhi.
"I want to tell everybody that for me, this very important contract and this achievement today is one of the milestones of the in-depth strategic and friendly partnership we have between India and France," he said.
New Zealander Campbell Wilson was appointed Air India's first foreign chief executive last May to overhaul operations and return it to profitability.
But the airline faced an onslaught of criticism for its response to a Wells Fargo executive who was allowed to disembark as normal after allegedly urinating on an elderly woman aboard a flight from New York late last year.
(With inputs from AFP)