Air India Negotiates Order for 200 Narrow-Body Aircraft with Boeing and Airbus

Air India Negotiates Order for 200 Narrow-Body Aircraft with Boeing and Airbus

Tata Group-owned Air India is reportedly engaged in advanced negotiations with Boeing and Airbus to place a potential order for approximately 200 narrow-body aircraft, according to sources cited by Reuters. This prospective acquisition would supplement the airline’s ongoing fleet renewal and expansion efforts, following its record-breaking orders in recent years.

Expanding the Fleet Amidst Industry Challenges

While the exact number of aircraft remains unconfirmed, insiders suggest the figure is around 200 narrow-body jets, which are critical to Air India’s domestic and short-haul international operations. This development follows Air India’s historic 2023 order of 470 aircraft from both Boeing and Airbus, and an additional 100 Airbus jets ordered in 2024. The scale of this potential deal has attracted considerable attention within the aviation sector, as it could significantly influence the competitive dynamics between the two leading aircraft manufacturers.

Both Boeing and Airbus are expected to consider strategic adjustments, including pricing, delivery schedules, and product offerings, to secure the contract. However, these negotiations are taking place amid ongoing global supply chain disruptions. Both manufacturers continue to face production bottlenecks and delivery delays, which may affect the timing and terms of any agreement with Air India.

All parties involved—Air India, Boeing, and Airbus—have declined to comment on the discussions.

Context and Industry Implications

The timing of these talks coincides with the World Air Transport Summit 2025, hosted by the International Air Transport Association (IATA) from June 1 to June 3. Prime Minister Narendra Modi opened the summit, highlighting the increasing significance of India’s aviation sector on the global stage.

Data from the Directorate General of Civil Aviation (DGCA) underscores the robust growth in India’s air travel market. Between January and April 2025, domestic airlines transported 57.51 million passengers, representing a 9.87% increase compared to the same period last year. This surge in demand is driving Indian carriers to expand their fleets to accommodate growing passenger volumes.

As Air India pursues this substantial order, the outcome could have wide-ranging effects on the airline’s expansion strategy, the competitive landscape between Boeing and Airbus, and the broader aviation market amid persistent supply chain challenges.