Air India is close to placing a historic order for 500 airliners worth tens of billions of dollars with both Airbus and Boeing as it prepares for an ambitious turnaround under conglomerate Tata Group, industry sources told Reuters.

The orders include up to 400 narrow-body aircraft and 100 or more wide-body aircraft, including dozens of Airbus A350s and Boeing 787s and 777s, the sources said on condition of anonymity as final details of the massive deal were finalized.

Such a deal could exceed $100 billion at list prices, including options, and would likely be the largest by a single airline, surpassing American Airlines’ order for 460 Airbus and Boeing jets more than a decade ago.

Even after the expected significant cuts, the deal would be worth tens of billions of dollars and would mark a good end to 2022 after a volatile year for the aviation giants, whose planes have recovered post-pandemic demand but face greater industrial and environmental pressures. and more.

It would also allow Airbus to secure a destination for some production segments of the A350 that were originally intended for Russia’s Aeroflot and are now vacant due to sanctions imposed on Moscow.

China took delivery of its first C919 airliner last week, but competition of this scale is at least a decade away, experts say.

The potential blockbuster order comes days after Tata announced the merger of Air India with Vistara, a joint venture with Singapore Airlines, to create a larger full-service airline and strengthen its presence in domestic and international airspace.

The deal gives Tata a fleet of 218 aircraft, cementing Air India as the country’s largest international carrier and second in the domestic market behind leader IndiGo.

The acquisition of debt-ridden Air India also gave Tata access to valuable flight rights and boarding slots, including destinations in the United States and Europe.

Air India’s maharajah mascot was once synonymous with lavishly decorated planes and impeccable service, but its reputation took a nosedive in the mid-2000s amid mounting financial woes.

Founded by JRD Tata in 1932, Air India was nationalized in 1953. Tata regained control in January and has since been working to restore its reputation as a world-class airline.

The order reflects a strategy to regain a strong market share for the large Indian diaspora abroad and for cities such as Delhi and Mumbai, which are dominated by foreign rivals such as Emirates.

Air India is also looking to capture a larger share of international regional and domestic traffic, preparing for a two-front battle with IndiGo.

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