Air India Airbus deal: Air India or the ‘Maharaja’ airlines has seen many ups and downs since Independence. The TATA subsidiary was nationalised by the government of India in 1953. Last year, TATA once again acquired the airlines claiming it to be its ‘ghar wapsi’. The negligence of government on the part of Air India drowned it into losses.
After ‘Maharaja’ returned home, it was highly anticipated that the resurgence of Air India was nearby. The belief has come true after the recent announcement by the Air India.
Air India seals the deal with Airbus
As per reports, Air India has sealed the deal with Airbus to procure 500 planes worth $100 billion at list price. It is the largest single investment by any airline as Air India is eyeing to reform itself.
Air India has agreed to purchase 250 Airbus planes, split between 210 single-aisle A320neos and 40 widebody A350s, and 220 Boeing aircraft including 190 of its 737 MAX narrowbody jets, 20 787 widebodies and 10 777Xs.
Airbus made the deal with Air India on February 10th, whereas Boeing reached its agreement with the airline on January 27th, which marked one year since Tata took back control of the previously state-run airline.
Also read: First Air India and now Ford: TATA’s corporate philanthropy continues
The move to rise form the losses
It is worth noting that in the financial year 2022, the losses of Air India increased by almost 33 per cent to Rs. 9,556.5 crores. However, there was a rise in revenue too. The revenue sored by 69 per cent. The airline posted net revenue of Rs19,815.9 crore as compare to Rs.12,104 crore in FY 2021.
The recent decision shows Air India’s plan to upgrade its outdated fleet and regain a significant portion of the travel market abroad as well as in cities like Delhi and Mumbai that are largely dominated by Gulf carriers like Emirates and their modern aircraft.
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