Air India: How the record-breaking jet deal would alter the game
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Following its goal of becoming “a world-class offering,” according to N. Chandrasekaran, chairman of the Tata group, which controls the airline, Air India recently signed a record contract for 470 aircraft from Airbus and Boeing.
With these orders, Air India would upgrade its inventory and “significantly” extend its network, surpassing American Airlines’ 2011 460-plane order, Mr. Chandrasekaran said.
The ailing national carrier, which Tata acquired almost 2 years ago, has decommissioned the majority of its planes and started a five-year plan to update its outdated fleet. By the year’s end, the first brand-new aircraft will start flying.
For bilateral agreements with Europe, the US, and other regions of the world, Indian passengers today rely mainly on Emirates, Qatar Airways, and Etihad, as well as other Middle Eastern airlines. As the new batch for Air India is placed into service, Mr. Martin thinks that might change.
Air India will be able to immediately enter marketplaces like the US and Australia through the purchase of wide-bodied aircraft like the A350s, thanks to nonstop flights between these locations and India. These are profitable routes to serve the significant Indian community that is present abroad.
But given their “loyal following” and capacity to start price wars, breaking the dominance of the Gulf carriers won’t be simple, according to Ajay Awtaney, proprietor of “LiveFromALounge.com,” an aviation website with an emphasis on India.
India doesn’t yet have enough capacity to accommodate a significant increase in passenger traffic, as evidenced by the winter’s huge lines and lengthy delays at immigration in Delhi and Mumbai.
However, the nation will construct at least 80 new ports over the following five years as part of its concentration on state-led capital spending on infrastructure.
According to official data, internal traffic in India has increased by 48.9% year over year since the outbreak. According to the most recent figures, over 122 million Indians flew within their own country in December 2022.
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