Air India Makes Historic Purchase of New Aircraft by ordering 470 brand-new planes. This is part of its plan to become a major player on the world stage.
The chairman of the airline, N. Chandrasekaran, stated that the company was working toward being “a world-class offering.”
He stated that the purchases from Airbus, based in Europe, and Boeing, based in the United States, will assist the airline to “dramatically” extend its network while also modernizing its aircraft.
The first aircraft will be put into service towards the end of this year.
Mr Chandrasekaran commented in a statement that was released to announce the transactions that “Air India is on a huge transformation path.” “This order is an essential milestone in realizing Air India’s aim… to deliver a world-class proposition serving global travellers with an Indian heart,” the company stated in a press release.
Air India said that it wanted Airbus to give it 250 planes and Boeing to give it another 220 jets to help it get back on its feet. Airbus is the largest aircraft manufacturer in the world.
The orders came less than two years after the Indian government sold the airline to Tata Group, India’s largest conglomerate, who had started the company in 1932. The business has been running since 1932.
After being taken over by the government in 1953, the airline has upheld its status as a premier carrier for many decades, with George Harrison and The Doors among its esteemed clientele.
However, during the 1990s, there was an increase in the level of competition, and after the company merged in 2007 with the state-owned domestic airline Indian Airlines, it started racking up losses.
The majority of international travel to and from India is now handled by competitors such as IndiGo and Emirates, Qatar Airways, Etihad, and other Middle Eastern carriers. As a result, the business has fallen behind these rivals.
Aviation analyst Mark Martin believes that these purchases could change that, but the airline, which made its most recent aircraft acquisition almost twenty years ago, will confront the difficulty of rapidly modernizing its operations, including the software, maintenance, and system for the new planes.
According to Mr Martin, “If they are successful, they will take India’s uniqueness to the globe once again after many years,” and this will be the first time it has happened in many years.
As a result of a rapidly expanding middle class and an economy that is expanding at a rapid rate, air travel in India has rebounded more swiftly than in many other markets.
Both Boeing and Airbus anticipate that demand will continue to increase in the future. As tensions between the West and China continue to rise and businesses search for alternative markets to fuel their expansion, the significance of the nation has grown not only economically but also geopolitically.
During a press conference held by the firm to announce the Airbus contract, both the President of France, Emmanuel Macron and the Prime Minister of India, Narendra Modi, were in attendance.
Later, Mr Modi remarked on Twitter that the orders were indicative of a “strong” partnership between India and France and that they would help build the aviation industry in his nation.
Separately, Vice President Joe Biden of the United States lauded the “historic” Boeing deal as evidence of a “deepening collaboration” between the United States and China, as well as a partnership that would contribute to the maintenance of over one million employment in the United States.
Since Rolls-Royce will be the company that supplies the engines, UK Prime Minister Rishi Sunak also stated that the orders would contribute to the creation of 450 jobs in the country.
In a statement, he added, “By strengthening trade relations with growing economic giants like India, we will ensure that UK businesses remain at the forefront of global growth and innovation.”