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Air India faces slow return to glory despite world’s largest order of Airbus, Boeing aircraft
- Air India has much to do before it re-emerges as a strong competitor, even with the 470 new aircraft it has on order, analysts say
- It must overcome bureaucracy, stiff competition and a legacy of state ownership, as it also navigates a partnership with Singapore Airlines
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Under its founder – aviation pioneer and Tata Group scion JRD Tata – India’s first airline once had an impeccable reputation, which it lost from the late 1970s onwards after being brought under government control.
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But Air India’s hopes are now soaring again after Tata Group placed the world’s largest aviation order for 470 aircraft this month, a year after the conglomerate took over the debt-ridden state-controlled carrier. The airline has not disclosed the value of the deal, but observers say it may amount to between US$70 and US$80 billion.
Still, the airline faces a long, difficult road to regaining its competitive edge, analysts say.
Air India’s recent order comprises 70 wide-bodied aircraft – 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9s – as well as 400 narrow body or single aircraft, including 210 Airbus A320/321 Neos and 190 Boeing 737 MAX.
The first new aircraft will join the airline later this year, and the bulk will arrive from mid-2025, said Tata Sons and Air India Chairman N Chandrasekaran. Air India has leased 11 Boeing 777 and 25 Airbus A320 aircraft to accelerate its fleet and network expansion, he added.
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With the new aircraft orders, Air India’s fleet would more than double from its present 228 planes. It also has options to buy another 370 jets.
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