Air India wants to reposition itself on the major airline map and is preparing a major blow to its competitors. Air India is investing 100 billion dollars to buy 500 Airbus and Boeing aircraft.
In a bid to become a major global player, Air India signs its biggest ever order. The purchase of 500 aircraft will exceed American Airlines’ investment 10 years ago of 460 Airbus and Boeing planes. However, industry experts believe they will face many problems with this ambitious expansion plan.
Air India invests 100 billion dollars in 500 Airbus and Boeing planes in merger
The expansion plan was made public shortly after Tata announced the merger of Air India and Vistara, a joint venture with Singapore Airlines, to create a larger carrier and strengthen its domestic and international presence.
Founded by JRD Tata in 1932, Air India was nationalised in 1953 and ran into financial difficulties after 2010. Tata took back control a year ago and is aiming to become a major global airline again. First and foremost, it wants to regain flights to and from India, a market currently dominated by Emirates and IndiGo.
However, the development plan may face several obstacles, such as modest domestic infrastructure, lack of pilots and fierce competition with foreign airlines.