Air India Orders 840 Aircraft, Includes Option to Buy 370 Planes: Official

Digital Desk: The historic 470-plane agreement between Air India and the United States' Boeing and France's Airbus could grow even larger because the Tata Group-owned airline has the option to buy an extra 370 planes over ten years.

Nipun Aggarwal, the airline's chief commercial and transformation officer (CCTO), confirmed the news in a Linkedin post on Wednesday.

It may be noted that Air India announced on Tuesday that it has placed a solid order for 250 planes with Airbus and 220 planes with Boeing, making it the largest single-tranche commercial aviation deal in history. Now that there is a provision for the purchase of an additional 370 jets, bringing the total number to 840, Aggarwal's article hints that the deal could grow even greater.

"Over the following decade, Airbus and Boeing will supply 470 firm aircraft, 370 options, and 370 purchase rights under the terms of the deal. 40 A350-900/1000 and 210 A320/321Neo/XLR are included in the Airbus firm purchase," Aggarwal stated in the post.

"20 B787s, 10 B777s, and 190 B737Max aircraft are included in the firm Boeing deal. Additionally, we have agreements in place with GE Aerospace, Rolls-Royce, and CFM International for ongoing engine maintenance " he added.

Airbus has said that it will start delivering A350s this year, despite the airline's lack of a start date for these plane deliveries. However, the A321neo deliveries could start a few years later.

"It is true that this is a turning point for Air India and Indian aviation. This 840-aircraft deal represents the culmination of a fantastic journey that began almost two years ago with the privatisation of Air India, according to Agarwal.

This purchase indicates the Tata Group's ambition to upgrade Air India to a premium airline and link India "non-stop" to all major cities worldwide. This order is further evidence of the enormous economic potential made possible by the privatisation of Air India, the speaker continued.