Air India makes record order for new planes
February 23, 2023 - Air India is ordering 470 passenger planes from Airbus and Boeing with a market value of over $40 billion, as the airline bets on a rapid surge in passenger demand in India and elsewhere in Asia.
The acquisition, which includes 220 planes from Boeing and 250 from Airbus, is the largest order placed by an airline in one go anywhere in the world, beating the 2011 order by American Airlines for a combined 460 aircraft.
The deals with Airbus and Boeing highlight the speed and scale of the growth of India’s air passenger market. The acquisition of wide bodied aircraft like the A350s will allow Air India to penetrate markets like the U.S. and Australia directly through non-stop flights between these destinations and India.
The deal, announced on February 14, includes a major win for engine maker CFM International, a joint venture between General Electric and France's Safran. It has been selected to power 210 Airbus narrow-body jets ahead of rival Pratt & Whitney, while bigger jets will be powered by GE or Britain's Rolls-Royce.
Boeing predicted that within the next decade India will become the third-largest market for air travel, behind the U.S. and China. It expects regional traffic will grow at 7 per cent annually through 2041, nearly double the world average.