Air India has agreed to buy 250 jets from Airbus (AIR.PA), as part of a mega-deal for 470 planes.

The deal is expected to include 220 Boeing (BA.N) jets.

Air India will use the 210 A320neo narrowbody aircraft and 40 A350 widebody aircraft to travel “ultra-long routes throughout the globe,” according to Tata Chairman N Chandrasekaran.

The combined order of 470 jets is the largest placed by a single airline.

Air India plans to lease an additional 25 Airbus aircraft to satisfy its immediate needs. Bringing its fleet to 500 aircraft, confirming a figure first reported by Reuters in December.

Analysts said it demonstrates India’s aspiration to become one of the world’s largest aviation markets, given its growing population of fliers and large diaspora.

The order also signifies a turning point for Air India, which, under the leadership of new CEO Campbell Wilson, is attempting to restore its prestige as a world-class airline.

As well as shed its image as a sluggish, dilapidated operation with an aging fleet and poor customer service.

“One of the most significant items is a modern fleet that is efficient and capable of performing on all paths,” Chandrasekaran said in a virtual press conference.

Indian Prime Minister Narendra Modi and French President Emmanuel Macron attended the online event.

Hence, highlighting the political and economic significance of a deal involving India’s former head of state.

Along with the strengthening of the relationship between India and France, this significant transaction demonstrates the achievements and aspirations of India’s civil aviation sector.

Nowadays, civil aviation is an essential part of India’s development,” said Modi.

According to industry sources, India has repeatedly lobbied Airbus to add an assembly process line in the nation. This is to match a factory in northern China.

Although, the aircraft manufacturer has rejected the proposal on industrial and financial grounds.

Nevertheless, the aviation deal will likely have some other industrial spin-offs, and Macron has pledged that France will collaborate with India in other industries as well.

Macron said during the video presentation, “This achievement demonstrates that Airbus and all of its French partners are totally committed to developing new areas of cooperation with India.”

Chandrasekaran stated that Airbus and Tata were collaborating on larger partnerships.

This includes a plan “to introduce commercial aircraft manufacturing in the future.”

In excess of a decade ago, American Airlines (AAL.O) placed an order for 460 Airbus and Boeing aircraft.

GE will power narrowbody jets ahead of rival Pratt & Whitney (RTT.N), while Britain’s Rolls-Royce will power larger aircraft (RR.L).

The Rising Role of India

Rishi Sunak, the British prime minister, stated that the agreement between Air India, Airbus, and Rolls-Royce will indeed create new jobs.

“By establishing trade ties with emerging economic powers such as India. We will ensure that British companies remain on top of worldwide innovation and growth,” he said during a statement.

Air India, whose mascot is a maharajah, was once renowned for its lavishly decorated aircraft and exemplary service.

Although, its reputation deteriorated in the mid-2000s as financial struggles intensified.

The record order aims to elevate Air India to the ranks of the world’s largest airlines.

And end up making it a prominent customer for aircraft suppliers and manufacturers.

Even at a time when its domestic market is experiencing a significant post-COVID-19 travel surge.

Hence, reflects a strategy to reclaim a substantial portion of the flights between India’s diaspora and urban areas.

It will also improve Air India’s competitiveness in the global market with domestic rival IndiGo, which dominates the Indian market.

And also holds a dominant position in regional flights.