Air India orders 250 Airbus aircraft in its first purchase after 16 years

Propelled by the Tata Group, Air India has been moving ahead on a growth trajectory, with emerging airline Vistara merged into the grand old carrier. Despite the attempts at enhancing Air India, including upgrades to its menu, a shortage of crew have led to delays and cancellations that blemised the much awaited recovery. But that hasn't stopped Air India from expanding its fleet, with the addition of 250 aircraft from Airbus.

Apart from the deal with Airbus, the airline has also reportedly signed a deal for 200 carriers with Boeing. This comes weeks after the Air India CEO confirmed that the airline is in talks to place a historic order for aircraft to boost its fleet. The purchase under Tata also comes 16 years after Air India has purchased new airplanes as a government-owned firm.

The deal with Airbus will reportedly be announced this week, and will also make Air India the first Indian carrier to deploy wide-bodied Airbus 350 aircraft. It is also expected to lead the way for the Indian aviation sector, which is likely to buy 1,700 carriers by 2024.

Icra recently revealed that domestic air passenger traffic has seen a 96% growth in India, and major players such as IndiGo are also eyeing a higher share in the global market by deploying wide body planes.