Tata in talks with aircraft makers over order for Air India -sources (updated)

SunCoke Energy

25/02/2022 05:00

(Adds Airbus, Boeing comment)
    By Aditi Shah
    NEW DELHI, Feb 25 (Reuters) - Planemakers Boeing Co  BA.N 
and Airbus SE  AIR.PA  have met executives from India's Tata
Group in recent weeks to discuss plane orders for Air India, two
people familiar with the matter said. 
    Tata last month regained ownership of state-run carrier Air
India after nearly 70 years in a $2.4 billion equity-and-debt
deal. While the airline has lucrative landing slots, the group
faces an uphill task to upgrade Air India's aging fleet and turn
around its financials and service levels.  urn:newsml:reuters.com:*:nL1N2U7100
    Air India has a mixed fleet of over 140 Airbus and Boeing
planes, and industry executives estimate it would cost Tata more
than $1 billion to refurbish the aging aircraft.  urn:newsml:reuters.com:*:nL4N2RE2ML
    Airbus declined to comment on discussions it says it "may or
may not be having with potential customers". Boeing said it does
not comment on conversations it might have with its customers.
    Tata did not respond to an email seeking comment.
    Bloomberg reported on Thursday that Tata had begun
preliminary discussions with the planemakers and lessors for
jets including Airbus A350-900s and Boeing 787-9 Dreamliners,
citing people familiar with the matter. 
    The airline, with its maharajah mascot, was once renowned
for its lavishly decorated planes and stellar service championed
by founder JRD Tata. Air India was founded in 1932 and
nationalised in 1953.
    Since the mid-2000s, however, Air India's reputation has
declined as financial troubles mounted. It flew widebody planes
with business class seats in poor repair and grounded some of
its new 787s to use for spare parts. 
    Tata, the autos-to-steel conglomerate, operates two other
airlines: Vistara, in a joint venture with Singapore Airlines
 SIAL.SI , and AirAsia India, which it operates in partnership
with AirAsia Group  AIRA.KL .

 (Reporting by Aditi Shah, Additional reporting by Tim Hepher,
Jamie Freed. Editing by Gerry Doyle)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))