Air India's mega-deal can go up to 840 planes with option to buy 370 more aircraft: Report

Air India's Chief Commercial and Transformation Officer Nipun Aggarwal's announcement comes a day after the airline said it has placed a firm order for 470 aircraft -- 250 from Airbus and 220 from Boeing, a report in the media said.

He termed the development, a "landmark moment" in Indian aviation history.

This order of 840 aircraft has been a culmination of a fascinating journey that began almost two years ago with the Air India privatisation process, he was quoted as saying in the report.

The Airbus firm order comprises 210 A320/321 Neo/XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s, he stated, according to the report.

"We have also signed up for long-term maintenance of the engines with CFM International (CFM), Rolls-Royce and GE Aerospace," he said, the report stated.

The landmark purchase was also the first time in over 17 years that Air India has ordered planes.

Tata Group acquired Air India from the government in January 2022 after winning a bid to buy the troubled national carrier.

The first A350 plane will be delivered to the airline by the end of this year.

On Tuesday, Prime Minister Narendra Modi described Air India-Airbus mega deal as a "landmark" that also indicates the growing bilateral cooperation between India and France.

PM Modi along with US President Joe Biden also welcomed the historic deal between Air India and Boeing as a glowing example of mutually beneficial cooperation.

UK Prime Minister Rishi Sunak also welcomed the mega deal saying it would create jobs and boost exports from Britain, where the French planemaker designs and makes aircraft wings.

The deal should create 450 manufacturing jobs and bring more than 100 million pounds ($122 million) of investment to Wales, where Airbus manufactures wings, the British department for business and trade said.