Indian airline Air India has signed an initial deal to purchase around 500 new aircraft. Taking into account the price that the airlines officially mention, the total cost of these aircraft can be more than 10 thousand billion dollars. Never before has a single company bought so many aircraft at once.

Industry sources told Reuters that the Indian airline was trying to find itself under new ownership and that the deal to buy so many planes together was for that purpose.

Reuters first reported the potential deal last December. Sources say that an official announcement may be made in this regard by next week.

Airbus and Boeing, the world’s two largest aircraft manufacturers, will produce roughly equal numbers of aircraft. Of the 250 aircraft to be purchased from Airbus, 210 will be single-aisle A-320 Neos and 40 larger A-350 aircraft.

And the aircraft purchased from Boeing will include 190 smaller 737 Max, 20 larger 787 and 10 777X aircraft.

Airbus and Air India signed the deal on Friday. On the other hand, the deal with Boeing was finalized on January 27. The date is important for Air India; Because, on this day, Tata got back the ownership of this former state airline.

Airbus did not comment on the matter. On the other hand, Reuters sent an e-mail to Air India but there was no immediate comment from them either.

In a note to staff on January 27, the airline said it was “finalizing a historic deal to purchase new aircraft”.

Air India has taken the strategy of replacing its old aircraft. The aim is to capture the large number of non-resident Indians who commute from big cities like Delhi or Mumbai. These routes are operated by Gulf airlines like Emirates, which have new aircraft.

The 400 narrowbody aircraft will help Air India capture the market on regional and domestic routes. Indigo now dominates these markets.

Air India initially planned to buy 275 aircraft from Airbus. But Reuters’ sources did not rule out the possibility that more aircraft would not be purchased or leased in the future.

However, it is not yet clear exactly how many additional aircraft may be ordered when the final order is placed.

This record purchase order by Air India will take them in line with other major airlines in the world. Apart from this, they will also move into the ranks of the influential in purchasing aircraft. And this will happen at a time when air traffic in India has increased tremendously after the Covid pandemic.

Air India’s mascot is ‘Maharaja’. It was once known for its exquisitely decorated planes. But in the first decade of this century, its reputation began to deteriorate when financial problems began.

Under the new owner, the airline wants to regain its lost reputation at home and abroad. And their aim in this regard is to establish that Air India has excellent service and the best aircraft in the world.