Tata Group-owned Air India To Buy 250 Planes From Airbus

Tata Group-owned Air India will buy 250 planes from Airbus, including 40 wide-body planes, as the airline grows and adds more flights. Air India and Airbus have signed a letter of intent to buy 250 planes from each other.

This is the first plane order that Air India has made in more than 17 years. It will have 40 A350 planes with wide bodies and 210 planes with narrow bodies.

The airline's last order was for 111 planes, with 68 coming from Boeing and 43 from Airbus. This deal, which cost USD 10.8 billion, was for 111 planes. In 2005, the order was made.

Air India is India's national airline, and its main office is in New Delhi. It has been around since 1932 and has a fleet of planes that fly both domestically and internationally. In recent years, Air India has had trouble with money and running its business. In 2020, the Indian government plans to privatize the airline.

Tata Group is an Indian multinational conglomerate that owns many businesses, including Tata Sons, which has a majority stake in Air India. The Indian government sold Air India to a group of companies led by the Tata Group for a reported $2.4 billion in 2021. This meant that Air India went back to its original owner, the Tata Group, which had started the airline in 1932. In 1953, the Indian government took over Air India and turned it into a government-owned company. With this purchase, Tata Group should have a stronger position in the Indian aviation market.

The Tata Group has been in the aviation business for a long time. It all started when Tata Airlines, which later became Air India, was started. In 2015, the group worked with Singapore Airlines to start India's first private airline, Tata SIA Airlines, which is now called Vistara.  

The Tata Group's purchase of Air India is a big step in the group's plans to grow in the aviation business. The deal includes all of Air India's operations, including its low-cost subsidiary Air India Express and its ground-handling arm, Air India Air Transport Services Limited (AIATSL).

The Tata Group has said that it wants to run Air India as a separate company from its other airline operations, with a focus on improving the customer experience, expanding the airline's network, and making operations more efficient. It is also expected that the acquisition will help the group's other businesses, like its hospitality, travel, and IT services, work better together.

The Tata Group is making a big move by buying Air India. This is a big deal because it means that the Tata Group is now in the long-haul international market. It also puts the group in a good position to take advantage of the expected growth in the Indian aviation market, which is expected to be one of the fastest-growing in the world in the coming years.