London Daily

Focus on the big picture.
Wednesday, Jul 09, 2025

Air India nears largest plane deal in history

Air India nears largest plane deal in history

Air India's massive deal with Airbus and Boeing is a significant step for the airline to reinvent itself, take on local and international competitors, and upgrade service and reliability. The deal is also a win for Airbus and Boeing, who will benefit from their local ventures with Tata Group.
Air India, the Indian flag carrier, is nearing completion of what could become the largest purchase of jetliners in commercial aviation history, as the airline seeks to reinvent itself to take on local low-cost rivals and powerful Gulf airlines like Emirates.

The airline has signed agreements with Airbus and Boeing for around 500 passenger jets, with Airbus set to win about 250 orders and commitments and Boeing to secure about 290 possible purchases.

The deal is a combination of firm orders, memoranda of understanding and letters of intent, and the final tally could still change. The negotiations have been carried out over the past few months by Air India and its parent company, Tata Group, and the deal should allow the carrier to upgrade service, reliability and reduce fuel costs.

Tata bought Air India last year in the most high-profile privatisation under Prime Minister Narendra Modi.

As part of the purchase, the group is consolidating its aviation business, which includes four airline brands, and has said it would merge Air India with Vistara, which it jointly holds with Singapore Airlines (SIA).

That agreement will give SIA a 25.1% stake in the combined carrier. The plane deal is also a big win for Airbus and Boeing, both of which have local ventures with the Tata Group, India's largest conglomerate.

The global aviation industry has been upgrading and refreshing their fleets to capitalize on the rapid rebound in travel after the Covid pandemic, and this is also the case for Air India as the supply of newly built jetliners became increasingly constrained.

With China abruptly ending many of its harsh coronavirus measures and throwing open its international borders, airlines are ramping up their long-haul capacity, enticed by the prospect of the world's biggest outbound tourism market being open for business again and betting that demand more broadly will return to pre-pandemic levels in 2023.
Newsletter

Related Articles

0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
Poland Implements Border Checks Amid Growing Migration Tensions
Political Dispute Escalates Between Trump and Musk
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
US Senate Votes to Remove AI Regulation Moratorium from Domestic Policy Bill
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
Jury Deliberations in Diddy Trial Yield Partial Verdict in Serious Criminal Charges
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×