Air India, owned by the Tata Group, is reportedly engaging in discussions with both Airbus and Boeing for a significant aircraft order. According to industry sources, the order may include around 200 additional single-aisle planes. This potential deal builds upon Air India's already substantial order from 2023, as the airline progresses with its multi-billion-dollar modernization strategy.

The discussions reportedly involve hundreds of aircraft in total, encompassing various sizes, and expand on previous talks regarding acquiring more wide-body aircraft. However, Air India, Airbus, and Boeing have all declined to comment on the matter.

News of this potential blockbuster order emerged as global airline leaders convene in India for an aviation summit where Prime Minister Narendra Modi is expected to speak. India is currently the world's fastest-growing aviation market. In 2023, Air India placed a then-record order for 470 aircraft from both Airbus and Boeing, with an additional order of 100 Airbus jets the following year.

These back-to-back aircraft orders occur during a period when aircraft manufacturers are grappling with supply chain challenges, resulting in significant delays in aircraft deliveries and a looming shortage of jets. Securing new aircraft is crucial for Air India, which has suffered from under-investment during government ownership. The airline is currently implementing an ambitious modernization plan aimed at regaining market share lost to global competitors.

While the precise number of narrow-body jets in this potential new order remains unclear, sources suggest it could involve a provisional total of 200 narrow-body planes, which are considered the workhorse of aviation fleets globally.

Air India currently operates a fleet of 198 aircraft, including 70 from the merged Vistara. Its low-cost subsidiary, Air India Express, has 103 aircraft, including 38 new Boeing jets from an October 2023 order, with nine more expected by June 2025. Despite these additions, Air India CEO and MD Campbell Wilson anticipates aircraft shortages from both manufacturers to persist for the next four to five years.

Air India's total order book currently stands at 570 jets, comprising 350 from Airbus and 220 from Boeing. Wilson stated that while wide-body capacity will remain consistent, the addition of narrow-body jets will stimulate growth in domestic and short-haul international markets in the current financial year.

This potential new order signifies Air India's commitment to expanding its fleet and enhancing its network to meet the increasing demand for air travel, both domestically and internationally. It also highlights the challenges the airline industry faces in securing new aircraft amid ongoing supply chain disruptions.