TOULOUSE, FRANCE — In a substantial move to revamp its operations, Air India has reportedly secured a massive agreement to acquire roughly 500 new aircraft valued at over $100 billion based on list prices.

According to industry insiders, this could be the biggest order ever placed by an airline company. The order will be divided between two of the largest aircraft manufacturers, Airbus and Boeing, with an official announcement expected as early as next week.

Air India has reportedly agreed to acquire 250 aircraft from Airbus and 220 from Boeing. The order from Airbus consists of 210 single-aisle A320neos and 40 widebody A350s, while the order from Boeing includes 190 737 MAX narrowbody jets, 20 787 widebodies, and ten 777Xs. This major fleet upgrade and expansion is expected to boost Air India's operations significantly.

On Friday, Airbus and Air India inked a deal, while Boeing signed its agreement with the airline on January 27th, marking a year since the Indian conglomerate Tata Group took control of the previously state-run carrier. On that day, the airline announced to its employees that it was finalizing a landmark order for new aircraft.

The order aligns with Air India's plan to renovate its aging fleet and reclaim a significant portion of the trips between India's sizable overseas community and cities like Delhi and Mumbai, which are mostly dominated by Gulf-based competitors like Emirates with their modern planes.

The agreement for 400 narrowbody aircraft will allow Air India to increase its share in both international traffic and the domestic market, thereby setting the stage for competition with IndiGo.

Although the number of Airbus jets is slightly lower than the originally planned 275, sources have not dismissed the possibility of Air India making additional purchases or leases in the future.

The historic order seeks to establish Air India as one of the world's major airlines when international air travel is experiencing a significant post-COVID-19 resurgence.

Under new ownership, the airline strives to revive its reputation both in domestic and international markets as a reputable carrier known for its exceptional service and top-notch aircraft.