Air India Ltd. on Monday placed the largest aircraft order in aviation history, deciding to buy 540 aircraft from Boeing and Airbus, allowing the Tata Group airline to expand its operations both domestically and internationally.

Air India is expected to spend a staggering $82 billion on the purchase of short- and long-haul aircraft, while the real cost would be less because bulk purchases are eligible for discounts and incentives.

Out of the total 540 aircraft, 470 are fixed orders from Boeing, and the remaining 70 are options that Air India may later exercise. The first of the 470 aircraft, which will arrive later this year, consists of 250 Airbus and 220 Boeing aircraft. The previous single-largest jet order, according to Bloomberg, was a 460-plane agreement by American Airlines in 2011.

About 450 single-aisle aircraft from the Airbus a320 family and Boeing 737 MAX are included in the total order; these aircraft will be used for domestic and short-haul international operations. The remaining 90 aircraft, all dual-aisle aircraft, will travel to Europe and the Americas.

In line with the government’s goal to make India an aviation hub, Air India hopes that this order will enable the nation to serve as a centre for international travel and give Indians direct access to many regions of the globe.

A significant portion of travellers from India currently flies to various locations in Europe and the Americas, passing through airports in the Middle East, Europe, and Southeast Asia. According to research by aviation consultancy CAPA India, the order represents “a critically crucial milestone” for India.