Air India Eyes Major Aircraft Deal with Airbus and Boeing Amid Expansion

Air India is in advanced talks with Airbus and Boeing for a new multi-billion-dollar aircraft order that could include around 200 additional single-aisle planes, according to industry sources. This move builds on the airline’s record 2023 purchase of 470 jets, as the Tata Group-owned carrier accelerates its fleet modernization to regain lost market share.

Sources say the negotiations could ultimately involve several hundred aircraft, spanning narrow-body and wide-body models. Boeing is reportedly the front-runner in discussions for additional 777X wide-body jets. While all parties—Air India, Airbus, and Boeing—declined to comment, insiders noted the talks are ongoing and could be affected by pricing hurdles, especially as Air India seeks to match the favorable terms secured by rival IndiGo, which recently expanded its Airbus order.

The timing of a final agreement remains uncertain, as large-scale aircraft deals typically involve months of negotiations and are often split between the two major manufacturers. The latest potential order underlines Air India’s aggressive transformation strategy after years of stagnation under government ownership.

India’s airline industry is experiencing rapid growth, with Airbus projecting an annual expansion of about 7%. However, infrastructure limitations and high fuel costs continue to challenge full-scale development. The International Air Transport Association (IATA), ahead of its Delhi summit, emphasized the country’s strong aviation potential, backed by surging demand and new regional connectivity plans.

As global aircraft manufacturers struggle with supply chain bottlenecks and delivery delays, securing new jets is critical for Air India’s goal to become a competitive force in international aviation once again. The announcement of any finalized deal could have a significant impact on the global aerospace sector and further cement India’s rising influence in commercial aviation.