Air India (AI), part of the Tata Group, is preparing to take another step that could reshape the aviation industry. According to sources speaking to Reuters, the airline is in advanced negotiations with Airbus and Boeing to order around 200 narrow-body aircraft. This move is part of Air India’s fleet expansion strategy centred on its hub at Indira Gandhi International Airport (DEL).
Air India to Expand Its Record 2023 Order
Air India’s 2023 announcement of a historic 470-aircraft deal marked the largest single aircraft order in aviation history. That package included 250 aircraft from Airbus and 220 from Boeing. By the end of the same year, an additional agreement with Airbus for 100 more aircraft raised the total to 570.
Now, the company is back at the table for nearly 200 new narrow-body aircraft. This latest potential order is expected to support Air India’s efforts to increase capacity and modernise its fleet, particularly on domestic and short-haul regional routes.
What’s Behind the New Order Strategy?
Air India aims to regain dominance in India’s fiercely competitive domestic market and neighbouring regions. To achieve this, it plans to:
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Increase flight frequency and efficiency using narrow-body aircraft,
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Offset temporary capacity gaps as some Boeing 787s and 777s undergo maintenance and cabin retrofitting,
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Meet rising passenger demand with aircraft available for fast delivery.
CEO Campbell Wilson noted that narrow-body aircraft deliveries will continue throughout 2025. However, he acknowledged that supply chain delays are limiting the pace of wide-body fleet modernisation.
Fleet Expansion Through the Vistara Merger and Subsidiaries
Following its merger with Vistara, Air India is managing a core fleet of 198 aircraft. Its low-cost subsidiary, Air India Express (IX), operates 103 aircraft, including 38 new Boeing 737 MAX jets ordered in October 2023.
By June 2025, nine more 737s are expected to join the fleet, further boosting Air India’s capabilities in the single-aisle aircraft segment.
Global Supply Chain Issues and Delivery Risks
Ongoing supply chain disruptions and production bottlenecks at Airbus and Boeing continue to pose significant risks to Air India’s expansion plans. According to Wilson, the impact of these constraints could last another four to five years.
Despite these challenges, Air India is choosing to accelerate its order processes rather than delay its growth strategy—demonstrating a clear willingness to take calculated risks to maintain momentum.
