Air India, owned by the Tata group, is in talks with Boeing and Airbus about ordering new planes and meeting its immediate needs by leasing planes and repairing grounded planes, the company’s chief executive said on Saturday.
According to industry analysts, the steel-driven auto conglomerate, which completed its purchase of Air India in January, faces an uphill struggle to modernize an ageing fleet, fix the company’s finances and improve service levels.
“We are in deep discussion with Boeing, Airbus and engine manufacturers for a historical order of the latest generation aircraft that will power Air India’s medium- and long-term growth,” Campbell Wilson, the airline’s chief executive, said at a Tata corporate event in Mumbai.
Wilson said Air India planned to expand its fleet and global network, aiming to increase its market share to 30% on domestic and international routes over the next five years.
Currently, according to industry estimates, Air India has a domestic market share of about 10% and an international market share of around 12%.
Air India announced in September that it would lease 30 Boeing and Airbus aircraft, expanding its fleet by more than 25% to increase market share and improve service levels.
Industry sources said in July that Air India was closing in on a decision on an order worth $50 billion at list prices to be split between Airbus and Boeing.
The sources said that the two aircraft makers were making a “last push” with the order planned to include up to 70 widebodies, including Airbus A350s and Boeing 787s and 777s, and up to 300 narrowbodies.