Air India Inks Historic Deal To Buy 500 Aircraft, Days After Vistara Merger: Report

The deal includes 400 narrow-body jets, 100 or more wide-bodies including dozens of Airbus A350s and Boeing 787s, and Boeing 777s.

New Delhi: Days after Tata announced the merger of Air India with Vistara, a joint venture with Singapore Airlines, a report has claimed that the famed Indian carrier is going to induct 500 aircraft into its fleet. It includes 400 narrow-body jets, 100 or more wide-bodies including dozens of Airbus A350s and Boeing 787s, and Boeing 777s, said the Reuters report quoting sources close to the development.

Even though nothing has been made official by Airbus or Boeing or Air India for that purpose, the deal is expected to be worth tens of billions of dollars. Only a few days ago, the Tata Group announced the merger of Air India with Vistara — which was not a surprise news as the word of mouth was out much ahead before the actual deal was inked. The merger has given Air India a combined fleet of 218 aircraft making it India’s largest international carrier and the second-largest domestic carrier, only behind IndiGo. Air India is also undertaking a herculean effort to merge four entities — Air India, Vistara, AirAsia, and Air India Express.

This mammoth deal for 500 aircraft signed by Air India speaks volumes of its optimism about the world’s fastest-growing airline market. The delivery of the 500 aircraft will take at least a decade to be completed, said the Reuters report. It has also cited experts who warned of hurdles that may stand in way of Air India’s ambition to recover a strong global position, including frail domestic infrastructure, pilot shortages and threat of tough competition with established Gulf and other carriers.