Tata Group-owned Air India in talks with Boeing and Airbus to buy planes

According to the airline's CEO on Saturday, Tata Group-owned Air India is in discussions with Boeing and Airbus about placing an order for new aircraft while also repairing grounded aircraft and leasing aircraft to suit its immediate needs.

The autos-to-steel conglomerate, which finalised the acquisition of Air India in January, confronts a difficult battle to modernise an ageing fleet, enhance service levels, and restore the company's financial health, according to industry analysts.

Campbell Wilson, the airline's chief executive, stated at a Tata corporate event in Mumbai that "we are in deep discussion with Boeing, Airbus and engine manufacturers for a historical order of the latest generation aircraft that will power Air India's medium- and long-term growth."

In order to boost its market share to 30 per cent on both domestic and international routes over the following five years, according to Wilson, Air India intends to grow its fleet and international network.

Industry estimates indicate that Air India currently holds a 10 per centdomestic market share and a 12 per centinternational market share.

In an effort to increase market share and raise service standards, Air India said in September that it will lease 30 Boeing and Airbus aircraft, more than doubling the size of its fleet.

In July, industry insiders claimed that Air India was getting closer to choosing between Airbus and Boeing for an order worth $50 billion at list prices.

(with inputs from agencies)