Air India, under Tata Group ownership, is in expanded negotiations with Airbus and Boeing to acquire up to 300 new aircraft.
- The talks include 200 narrow-body jets (used for domestic and short-haul routes) and between 80 to 100 wide-body aircraft for long-haul international operations.
- Previously, Air India was reported in March and June 2025 to be considering orders for tens of new wide-body aircraft, in addition to adding narrow-body jets.
Why It Matters
Strategic Fleet Modernisation
The move is part of Air India’s broader transformation plan under Tata, aiming to modernize its fleet, replace older, less efficient aircraft, and expand international route capacity.
Competing Globally
With other major airlines consistently expanding and upgrading fleets, Air India needs modern, fuel-efficient, and high-capacity aircraft to compete on long-haul routes. Wide-body jets (like A350, 777X etc.) are central to that.
Market Conditions & Demand
- International passenger traffic from India is growing quickly, outpacing domestic growth.
- Airbus and Boeing are both under supply pressure globally, so securing production slots is becoming more challenging.
Uncertainties & Challenges
- No Final Decision Yet — It’s not clear how many of the 300 will become firm orders vs. options. The exact split between Airbus and Boeing hasn’t been decided.
- Delivery Timelines & Capacity — Manufacturers have long lead times, capacity constraints, and supply chain bottlenecks (engines, materials, parts). That could delay deliveries.
- Financing & Costs — Such large purchases involve massive capital, maintenance, training, infrastructure, and operational costs. Very likely to involve negotiations over pricing, after-sales, and service contracts.
What It Could Look Like
If the deal is finalized:
- Air India could end up ordering ~200 narrow-body jets (for domestic & regional expansion) and ~80-100 wide-bodies (for long haul/international) as per the latest sources. Reuters
- The wide-body segment might feature aircraft like Airbus A350 and Boeing 777X among others.
Significance for India & Aviation
- Boost for Indian aviation industry — More aircraft orders typically mean more jobs, more maintenance & service contracts, possibly more local supply chain involvement.
- Airline competitiveness — Air India has been under pressure to match service, fleet, and network quality of international peers. This deal is a statement of serious intent.
- Environmental impact — Newer aircraft tend to be more fuel efficient, which helps reduce emissions per seat mile, an increasingly important factor globally.
Bottom Line
Air India’s pursuit of a mega 300-jets order from Airbus and Boeing could be one of the largest fleet expansion moves in recent aviation history. It underscores Tata Group’s ambition to transform the airline into a globally competitive carrier. But turning the talks into a firm, balanced, timely order will require navigating complex negotiations, production constraints, and financial commitments.
