Air India to buy 300 planes in one of the largest aircraft deals in historytext_fields
New Delhi: Air India is to place an order for as many as 300 narrowbody jets to overhaul its fleet services, according to a report by Bloomberg.
Sourcing from people familiar with the deal, the report said that the former state-run airline may order Airbus SE's A320neo family jets or Boeing Co.'s 737 Max models, or a mix of both.
Air India will have to shell out $40.5 billion for 300 737 Max-10 jets, but availing discounts for a large purchase could get a cut on the sticker price, according to the report.
A huge order from India for Boeing could mean a major breakthrough where its rival Airbus largely dominate the world's fastest-growing aviation market before covid.
The report details that production and delivery of 300 planes could take years, because Airbus builds about 50 narrow-body jets a month.
Representatives for Air India and Boeing reportedly would not comment on the deal.
Tata bought Air India earlier this year in the most high-profile privatization during Modi regime.
Inducting new planes into service could help the airline cut costs and compete better with rivals, according to the report.