Air India, the country's national carrier, has unveiled a historic megadeal with European plane maker Airbus to buy around 250 new planes, part of a wider order for nearly 500 jets worth more than an estimated $100 billion.

The formerly state-owned company, now controlled by the Indian multinational Tata Group, announced the finalization of the order for 210 narrowbody planes and 40 widebody aircraft from Airbus on Tuesday. 

The deal is also expected to include an order for 220 planes from Airbus rival Boeing, according to industry and diplomatic sources, as part of a decade-long expansion of Air India under the Tata Group.

The combined 470-jet order is the largest ever by a single airline, with Air India also planning to lease roughly 25 more Airbus jets in the short term.

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Airbus CEO Guillaume Faury said the huge order marked a historic moment for India and his company. French President Emmanuel Macron heralded the announcement for the 250 Airbus jets on Tuesday, saying his country was committed to working closely with India on the contract.

"This achievement shows that Airbus and all its French partners are fully dedicated to develop new areas of dedication with India," Macron said during a video presentation.

Macron added that France was committed to providing state-of-the-art, efficient technology to India and that the decline of the COVID-19 pandemic should lead to boosted economic ties between the two nations.

UK Prime Minister Rishi Sunak also welcomed the announcement, saying it would help create more jobs and boost exports from Britain, where the French planemaker designs and makes aircraft wings.

The order was expected to create 450 manufacturing jobs and bring more than £100 million ($122 million) of investment to Wales, where Airbus manufactures its wings, the British department for business and trade said.

The 40 wide-body A350 aircraft that is part of the deal are powered by Rolls-Royce engines, which are assembled and tested in Derby in central England. Air India was once known for its luxurious planes and high-level service but its reputation declined in the mid-2000s amid financial problems.

The record order is aimed at bringing Air India into the same league as other large global airlines, making it an influential customer for planemakers and suppliers at a time when India's travel industry is booming post-pandemic. 

The deal is also focused on recapturing a wider share of trips between India's diaspora and cities such as Delhi and Mumbai, routes currently dominated by foreign rivals such as Emirates.

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