| | FEBRUARY 20238Air India announced on Tuesday (Feb 14th) that it will purchase 250 Airbus planes in a deal aimed at transforming the former national carrier after decades as a massive burden on the public purse. The purchase of the airline's first new plane since 2006 is part of an ambitious plan to return to profitability in the world's third-largest air transport market. It has signed a letter of intent to purchase 210 narrow-body A320neo jets and 40 long-haul A350 aircraft, with an unspecified number of options for additional aircraft, as part of its strategy to increase domestic market share and transform Indian airports into global travel hubs.According to media reports, Air India plans to announce a similar purchase agreement with Boeing in the near future. Combined, the two deals could represent the single biggest fleet purchase in aviation history. "We are going through a massive transformation", said Air India chairman N. Chandrasekaran, announcing the Airbus agreement with French President Emmanuel Macron and Indian Prime Minister Narendra Modi in virtual attendance. "One of the most important things is a modern fleet which can perform for all routes".Air India was founded in 1932 by the tea-to-steel conglomerate Tata Group, with the Indian government acquiring a majority stake after independence. By the end of the century, however, the venture was struggling to compete with Gulf carriers and low-cost airlines, was starved of investment, and was racking up billions of dollars in losses that dragged on the public purse. Tata, which is also chaired by Chandrasekaran, finally bought it back a year ago for $2.4 billion. According to Airbus forecasts, India's air traffic will grow at a 6.6 percent annual rate over the next two decades, nearly twice the global average."Today is a historic moment for India, for Air India and for Airbus", said Airbus chief executive Guillaume Faury, saying the size of the order "Demonstrates the appetite for growth in the Indian aviation industry". The European aircraft manufacturer already has an engineering centre in the country and sources some components from Indian suppliers. Macron said the deal highlighted the bond between Paris and New Delhi. "I want to tell everybody that for me, this very important contract and this achievement today is one of the milestones of the in-depth strategic and AIR INDIA ANNOUNCES DEAL TO BUY 250 AIRBUS PLANES TO TRANSFORM ITS FLEETIN FOCUS
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