Specifically, Air India agreed to purchase 250 Airbus aircraft at a total price of $45.9 billion, including 210 A320neo narrow-bodies and 40 A350 wide-bodies; and 220 Boeing aircraft, including 190 737 MAX narrow-bodies, 20 787 wide-bodies and 10 777Xs, worth $34 billion.

Air India’s total aircraft purchase will reach 495, an Airbus executive said, adding that another 25 Airbus aircraft will be leased to meet the company’s current needs.

US President Joe Biden called the agreement “historic” and said he looked forward to further deepening the partnership with India’s Prime Minister Narendra Modi as they tackle shared global challenges.

Narendra Modi pointed out that this important agreement shows that India will become the third largest aviation market in the world, and the Indian aviation industry will need more than 2,000 aircraft in the next 15 years.

The order also reflects Air India’s strategy to modernize its aging fleet and recapture a share of travel between India’s large diaspora and cities such as Delhi and Mumbai, which are largely operated by Gulf airlines such as Emirates. Rival young fleets dominate.

Air India’s new chief executive, Campbell Wilson, is trying to restore its reputation as a world-class airline, shedding its past image of sluggishness, aging fleet and poor service.

Air India was founded by the legendary JRD Tata, who was also a pioneer in the aviation industry in India. The company was acquired by India’s largest conglomerate Tata Group last year, shedding decades of losses and debt from Air India.

N Chandrasekaran, chairman of India’s Tata group, said Airbus and Tata were working on a closer partnership, including the introduction of a commercial aircraft production line at some point in the future.

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