Air India, which is controlled by the Tata Group, has completed the purchase of 470 passenger aircraft from Airbus and Boeing, the two leading commercial aircraft manufacturers in the world.
The Intention behind the Deal
The landmark agreement strengthens India’s position as a rising commercial aviation leader on the international stage. Additionally, it has elevated Air India to a group of aspiring international carriers, which is a much-needed development for a nation where the aviation industry is expanding quickly.
The Tata Group’s intention to quickly increase its presence in the aviation industry and compete with both domestic and foreign competition is demonstrated by its agreement to purchase approximately 500 jets for Air India. After months of secret negotiations held close to Britain’s Buckingham Palace, the record aviation deal was finalized
How the Deal was cracked?
Only on Tuesday, as leaders praised the agreement in a diplomatic hug between the top G20 countries, was confidentially withdrawn. Despite being a significant victory for the Tata Group, which only recently recovered control of Air India, the announcement was kept under wraps.
For several days at a time, negotiators from Air India, major aircraft manufacturers, and engine manufacturers camped out in the Tata-owned hotel and adjacent rooms. All parties involved wanted to increase their presence in the rapidly expanding Indian aviation sector, which has seen numerous airline expansion plans come and go.
The agreement gave Boeing an opportunity to regain ground against Airbus in the single-aisle aircraft market in India. On the other hand, Airbus desired a larger share of the competitive rival’s market for wide-body aircraft. The agreement was balanced out between the two plane makers, though. Nipun Aggarwal, the chief commercial and transformation officer of Air India, and Yogesh Agarwal, the head of aircraft operations, spearheaded the negotiations. The sellers continually churned out fresh “best offers” while being fueled by room service as the negotiations frequently went late into the night.