JRD Tata founded Air India in 1932, and it was nationalised in 1953. Tata seized control in January and has since worked to restore the airline’s status as a world-class carrier.
The order represents a desire to reclaim a significant part of travels between India’s massive overseas diaspora and cities such as Delhi and Mumbai, which are now dominated by international competitors such as Emirates.
Air India also seeks to increase its share of regional foreign traffic as well as the local market, setting up a competition with IndiGo on two fronts.
The 500 planes, which will be delivered over the next decade, will replace and increase fleets in the world’s fastest-growing air transport sector, while also contributing to Prime Minister Narendra Modi’s objective of boosting the economy to $5 trillion.
However, analysts warn that several obstacles, including poor local infrastructure, pilot shortages, and the danger of severe competition with established Gulf and other airlines, lie in the way of Air India’s goal to reclaim a major worldwide position.
