Air India, an airline led by the Tata Group, is reportedly close to placing an order for upto 500 planes from both Airbus and Boeing.
The order is said to include 400 narrow-body jets and 100 or more wide-body jets, such as the Airbus A350 and the Boeing 787 and 777. If the deal goes through, it could be worth over $100 billion at list prices.
Even after significant expected discounts, the deal would be worth tens of billions of dollars, Reuters reported.
The deal could also make Air India the largest international carrier in the country and the second-largest domestic carrier.
The order comes as Tata Group has annouced the merger between Air India and Vistara, to create a larger full-service carrier in the aviation sector.
Air India was founded by JRD Tata in 1932 and was nationalized in 1953. Tata regained control of the airline in January and has since been working to restore its reputation as a world-class carrier.
Air India is planning to purchase these 500 jets over the next decade to expand and replace their current fleet in the world's fastest-growing air travel market.
However, experts warn that there are many challenges that stand in the way of Air India's plans, including a lack of domestic infrastructure, pilot shortages, and competition with established carriers.
Additionally, the company may struggle to obtain the medium-haul Airbus A321neos that it has ordered for the Air India-Vistara partnership as quickly as it would like, as the European planemaker is sold out until 2028 or later.
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