Tata-owned Air India set to place 500 new aircraft to meet surging demand

Air India announced in September 2022 that it would lease 30 Boeing and Airbus planes, increasing its fleet by more than 25 percent as part of an effort to increase market share and improve service levels.

FPJ Web DeskUpdated: Monday, January 16, 2023, 09:05 PM IST
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New Delhi: Air India faces an uphill battle to upgrade an ageing fleet, turn around the company's finances, and improve service levels. To restore Air India's efficiency and stability, its new owner Tata Group-owned Air India close to ordering new airplanes from Boeing and Airbus. After servicing its immediate needs by leasing planes and repairing grounded planes, Air India is set to add 500 new aircraft to its fleet.

The report comes a month after Air India's CEO Campbell Wilson had confirmed that they will be placing a "historic order of the latest generation aircraft that will power Air India's medium- and long-term growth." The latest update has come from leasing firm AirLease Corp, which says 400 narrow bodied and 100 wide bodied models will power up Air India's recovery.

Earlier, Air India's CEO had said that the carrier hopes to expand its fleet and global network over the next five years, with the goal of increasing its market share to 30 percent on both domestic and international routes.

Air India has 10 percent domestic and 12 percent international market share

According to industry estimates, Air India currently has a domestic market share of about 10 percent and an international market share of about 12 percent.

Air India announced in September that it would lease 30 Boeing and Airbus planes, increasing its fleet by more than 25 percent as part of an effort to increase market share and improve service levels.

According to industry sources, Air India was getting closer to a decision on a $50 billion at list price order that would be split between Airbus and Boeing in July.

Both planemakers were said to be making a "final push" at the time, with the order set to include up to 70 wide-body jets, including Airbus A350s and Boeing

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