Air India spreads wings: acquires 220 Boeing airplanes; a game changer for the aviation industry in India

Air India has made a historic Airbus order and has now mentioned that they have even signed an agreement with the key player in American aerospace Boeing for the supply of 220 aircraft. According to the agreement, the Tata group-owned airline will receive 190 narrow-body 737 MAX jets and 30 widebodies followed by 20 of the Boeing 787 and 10 Boeing 777Xs. The acquisition has been mentioned in a statement.

The White House has further confirmed the agreement between Air India and Boeing. US President Joe Biden has stated that this announcement shows the strength of the partnership between the US and India.

The agreement was brought to notice after hours when Air India mentioned in a press conference that it has signed an agreement with the U.K based Airbus and Rolls-Royce for the supply of 250 airbuses.

The order of Airbus and Boeing is marked as the largest order by any airline in history and it has been seen as an attempt by the Tata group to redesign itself as a fuel-efficient aerospace industry.

N. Chandrasekaran, the chairman of Tata sons and Air India has talked about the acquisition as an integral step for realizing Air India’s ambition articulated in the fleet. The Ai powered program will help to serve global customers better.

He has further mentioned that the purchase of the new aircraft will modernize the fleet and play a crucial role to expand its network. It will provide parallel opportunities for the employees in the aviation industry, thus, catalyzing accelerated development in the Indian ecosystem.

Air India completed one year under the Tata Group on January 27. The Tata Group has acquired a 100 percent equity stake in a government-initiated strategic program. The company has even declared a five-year plan named Vihaan which will allow the company to hold a 30 percent share in the domestic and international markets. The aviation sector emphasizes growing its network and fleet through its plan, revamping, and improvising its performance, reliability, and performance in the industry.

The plane deal could be a game changer for Air India:

Air India has not performed well in the previous years as the aviation industry in India suffered massive turmoil. The new initiative with Tata Group indicates Air India’s opportunity to modernize its aircraft and let go of its older aircraft. It will provide Air India an equal momentum to compete with the global airline market including Lufthansa and Singapore airlines.

Indian travelers mostly rely on Emirates, and Qatar Airways for their travel around Europe, the US, and other parts. But, the deal by Air India will cause a major change with the new air fleet starting operating.
Air India has been flooded with poor services over the years which has contributed to poorly-maintained cabins, and dysfunctional entertainment systems. All the grievances will be addressed by the new deal but the crucial shortcoming is the lack of human resources in the aviation industry.

India does not have adequate capacity to manage the large traffic in air space. But, India will focus on building new airports in different parts of India as a part of the investments in the infrastructure program.
Biden has added in an interview that the purchase by Air India will create over one million American jobs across different states. PM Modi has addressed how the global strategic agreement between the two countries will be beneficial for both and has called out the US companies to utilize the opportunities because of the growing aviation industry in India.

Tata group’s financial records and negotiations with the Air India team have helped the group to sign an agreement with the engine makers GE and Rolls Royce. The status of the Tata group has helped to achieve the big shot because the PBH agreements are not attractive to the engine makers.

The acquisition of Air India has helped the latter to overcome its hurdles by improving its operations. Air India has increased the number of average flights by 30 percent. It has increased the fleet size by 27 percent and comprises 100 operating aircraft. It has improved in on-time performance. Air India often had delays and struggled with timely departures under the Indian government. It was able to achieve 70 percent on-time performance.

The Tata Group’s acquisition will make Air India a key player in both the Indian and International markets and resign the aviation industry with fuel-efficient engines, sealing the world’s largest aviation deal.

edited and proofread by nikita sharma