Tata-owned Air India is in advanced discussions with aviation giants Airbus and Boeing to secure a substantial new order for narrow-body aircraft, potentially adding around 200 single-aisle jets to its fleet, according to industry insiders. This move marks a continuation of the airline's aggressive modernization strategy following its record-setting 2023 deal and signals its determination to regain dominance in India’s fast-evolving aviation sector.
Sources familiar with the negotiations revealed that the talks go beyond just narrow-body aircraft and could ultimately include a wider range of jet types, possibly running into several hundred planes across multiple categories. In the wide-body segment, Boeing appears to be leading the race to supply additional 777X aircraft to Air India, insiders said. However, none of the involved parties—Air India, Boeing, or Airbus—have officially commented on the matter.
The news of these possible mega purchases surfaced just as global airline executives gathered in New Delhi for an industry summit hosted in the world’s fastest-growing aviation market. Indian Prime Minister Narendra Modi is expected to address the gathering, highlighting the strategic importance of aviation to the country’s economic trajectory. Air India had previously stunned the industry by ordering 470 aircraft last year, followed by an additional 100 Airbus jets, making it one of the largest procurement streaks in commercial aviation history.
Securing fresh aircraft remains critical for Air India, which endured years of stagnation under government ownership and is now pushing a multi-billion-dollar transformation to regain lost market share. The airline’s modernization plan includes upgrading its aging fleet and revamping service standards to match international rivals. One source indicated the current narrow-body negotiations tentatively include 200 aircraft, while others suggest the total could surpass that figure.
Despite the ambitions, the timeline for finalizing the order remains uncertain. Price negotiations may prove challenging, especially as Air India looks to replicate cost-efficient deals like those recently announced by IndiGo, India’s largest carrier, which revealed new partnerships and an expanded Airbus order. Typically, such massive aircraft orders involve long, confidential discussions, with each manufacturer—Boeing and Airbus—unveiling their portions separately.
India’s aviation market is growing at an annual rate of 7%, according to Airbus projections. However, analysts warn that this growth could be slowed by infrastructure bottlenecks, especially in efforts to expand regional connectivity. Meanwhile, the International Air Transport Association (IATA), which represents over 300 airlines globally, noted that while Indian carriers are set for rapid expansion, persistent challenges like high fuel costs and taxes continue to weigh on long-term profitability.