Air India nears historic order for up to 500 jets worth billions: Report

Air India is close to placing orders for up to 500 jets worth tens of billions of dollars from Airbus and Boeing. The orders include as many as 400 narrow-body jets and 100 or more wide-bodies including Airbus A350s and Boeing 787s and 777s, industry sources said  

As it carves out an ambitious recovery under the Tata Group conglomerate, Air India is close to making unprecedented orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing, industry sources told media.

Sources claimed, speaking on the condition of anonymity because the massive transaction is still being finalised, that the orders comprise up to 400 narrow-body aircraft and at least 100 wide-body aircraft, including Airbus A350, Boeing 787, and Boeing 777 models.

On Saturday, a different source stated that the Tata Group airline is anticipated to finalise a contract with Boeing to purchase 150 737 MAX aircraft as part of the company's expansion ambitions. If fulfilled, the Air India purchase for 500 aircraft will be historic for aviation both in India and the rest of the world.

The potential order comes days after Tata announced the merger of Air India with Vistara, a joint venture with Singapore Airlines, to create a bigger full-service carrier and strengthen its presence in domestic and international sectors.

In the next five years, Air India, which now holds a 10% market share in India and a 12% market share internationally, wants to increase its footprint to 30% and restructure its overseas operations. The Indian aviation space is headed for cut-throat competition with the entry of debutant Akasa Air, relaunch of the troubled Jet Airways and revamp of an aggressive Maharaja under the leadership of Tata Group chairperson N Chandrasekaran.