Air India Places a $70 Billion Order for 470 Planes

Air India, which is owned by the Tata group, has placed an unprecedented order for 470 aircraft from Airbus and Boeing Co, with a list price of $70 billion, according to Chief Executive Campbell Wilson, as the airline looks for ways to grow in the lengthy global market. In an agreement that would break past data for a major operator, Air India had just this month confirmed tentative orders for 220 jets from Boeing and 250 from Airbus.

Wilson informed journalists at a media briefing that the airline intends to pay for the purchase using a variety of funds, including corporate working capital, shareholders ’ equity, and the purchase and rent back of aircraft.

To revamp the fleet and support a large infrastructure and capability expansion, they have agreed to a historic purchase of new airplanes that will begin joining the fleet at the beginning of the year and will continue until the end of this decade, according to Wilson.

Due to financial difficulties, an aging fleet, and subpar service, Air India, formerly regarded as a world-class carrier in India, had its reputation degraded in the middle of the 2000s.

The resurgence of the aircraft underneath the Tata conglomerate, having taken over the once government-owned airline last year, wants to take advantage of India’s sizable diaspora around the globe and rising base of travelers. Every month, 500 new cabin crew are hired by Air India. It reported last week that it would hire 900 pilots and nearly 4,200 cabin workers.