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Tata in talks with Boeing, Airbus to upgrade Air India fleet

Talks with the two aircraft manufacturers are still in the preliminary stage

air india rep Representational image | Facebook account of Air India

Aircraft manufacturers Boeing Co and Airbus SE are reportedly in talks with the Tata Group for plane orders for Air India. This is part of the new owners’ plan to revive the ailing carrier and upgrade its old fleet of aircraft.

Tata had taken over the government-run Air India last month in a $2.4 billion equity-and-debt deal and faces the difficult challenge of turning around the fortunes of the debt-ridden airline.

Bloomberg and Reuters have reported that Airbus and Boeing officials met with Tata representatives privately for an order including Airbus A350-900s and Boeing 787-9 Dreamliners.

Air India currently has fleet of over 150 Airbus and Boeing planes and, according to one estimate, it could cost Tata more than $1 billion to refurbish the existing fleet.

The talks with the two aircraft manufacturers are still in the preliminary stage and no decision has been taken yet, according to inside sources. Air India is looking to acquire new narrow-body jets for domestic services and wide-body aircraft for long-distance flights.

The airline possesses lucrative and parking landing slots at most major airports but is struggling to cope financially.

Earlier in February, N. Chandrasekaran, chairman of Tata Group, told Air India employees that the fleet would be upgraded soon. Air India’s average fleet age is more than 10 years.

Air India operates a fleet of Airbus A320ceo family, Airbus A320neo, and widebody fleet of Boeing 747, Boeing 777 series and Boeing 787.

By Bloomberg estimates, a deal for 50 brand new 787-9 jets could be valued at $14.6 billion at sticker prices, before discount.

Airlines typically order jets years in advance because manufacturing capacity at plane makers is limited and getting early delivery slots remains a challenge.

New CEO background check

In the meantime, the ministry of home affairs (MHA) is carrying out a thorough background check of Air India's newly appointed CEO and MD, Ilker Ayci, a Turkish national.

Tata recently announced Ayci's appointment as the CEO and MD.

The home ministry "scrupulously" carries out a background check of all foreign nationals when they are appointed in the key positions of any Indian company

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