Tata in talks with aircraft makers over order for Air India –sources

New Delhi, Feb. 26 (BNA): Aircraft makers Boeing Co (BA.N) and Airbus SE (AIR.PA) have met executives from India’s Tata Group in recent weeks to discuss aircraft orders for Air India, two people familiar with the matter. He said.

Last month, Tata regained ownership of state-run Air India after nearly 70 years in a $2.4 billion equity and debt deal. Reuters said that while the airline has lucrative landing opportunities, the group faces the daunting task of modernizing Air India’s aging fleet and adjusting its financial and service levels.

Air India has a mixed fleet of more than 140 Airbus and Boeing aircraft, and industry executives estimate it would cost Tata more than $1 billion to refurbish the aging aircraft.

Airbus declined to comment on discussions it said it “may or may not have 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 Thursday that Tata has begun preliminary discussions with aircraft makers and leasers including Airbus A350-900s and Boeing 787-9 Dreamliners, citing people familiar with the matter.

The airline, with the Maharaja’s mascot, was best known for its lavishly decorated aircraft and excellent services piloted by its founder, JRD Tata. Air India was established in 1932 and nationalized in 1953.

But since the mid-2000s, Air India’s reputation has declined as financial problems mount. It has flown wide-body airliners with business class seats in poor repair and has grounded some of its new 787s for spare parts.

Tata, the auto-to-steel conglomerate, operates two other airlines: Vistara, in a joint venture with Singapore Airlines (SIAL.SI), and AirAsia India, which operates in partnership with AirAsia Group.

M