In an effort to expand its global presence, Air India has placed a record-breaking order for 470 new aircraft.
The airline aims to become "a world-class proposition," according to Chairman N Chandrasekaran.
He claimed that the airline's fleet would be modernized and its network would be "dramatically" expanded thanks to the orders from US-based Boeing and European manufacturer Airbus.
At the end of this year, the first aircraft will start flying.
Mr. Chandrasekaran stated in a statement announcing the deals that "Air India is on a large transformation journey.". "This order is a critical step in achieving Air India's goal. to provide a premium offering with an Indian heart to travelers worldwide. ".
In order to spur its revival, Air India stated that it was looking to Airbus for 250 aircraft and Boeing for an additional 220.
Less than two years have passed since the Indian government sold the airline to the Tata Group, the country's largest conglomerate, which had founded the business in 1932.
The airline, which was nationalized in 1953, maintained its status as a top-tier carrier for a very long time and had clients like George Harrison and The Doors.
But after the company merged with the state-owned domestic airline Indian Airlines in 2007, competition increased in the 1990s, and losses began to mount.
The firm lost market share to rivals like IndiGo, Emirates, Qatar Airways, Etihad, and other Middle Eastern airlines, which now handle a large portion of international travel to and from India.
These orders might change that, according to aviation analyst Mark Martin, but the airline—which bought its last aircraft almost 20 years ago—will have a hard time quickly updating all of its systems, including software, maintenance, and its system for the new aircraft.
If they are successful, they will bring India's distinctiveness back to the world after a long absence, according to Mr. Martin.
In India, where the middle class is expanding and the economy is expanding quickly, air travel has recovered more quickly than in many other markets.
Both Boeing and Airbus anticipate that demand to increase. As Western relations with China become less certain and businesses search for new markets to fuel their growth, the nation's economic and geopolitical significance has also grown.
In a press conference announcing the Airbus deal, the company was joined by the French President Emmanuel Macron and the Prime Minister of India, Narendra Modi.
Later, Mr. Modi claimed on Twitter that the agreements would support the Indian aviation sector and showed off India and France's "robust" relationship.
Separately, US President Joe Biden praised the "historic" Boeing order as evidence of a "deepening partnership" between the two nations and as something that would support over a million jobs in the US.
Since Rolls-Royce will be providing the engines, UK Prime Minister Rishi Sunak also stated that the orders would help create 450 jobs in the UK.
In a statement, he said, "By fostering trade ties with emerging economic giants like India, we will ensure UK businesses remain at the forefront of global growth and innovation.