Software major Tata Consultancy Services has bagged an interior design contract from US airframe manufacturer Boeing Company and will work closely with its customer to design the interiors of new aircraft.

Separately, the Tata group company is also setting up an "airline innovation laboratory" in Chennai to showcase mock-up interiors of aircraft. The laboratory will enable customers to test software used by the airline industry.

Under the interior designing contract, TCS will use computer-aided design and manufacturing to visually create the interiors of an aircraft for a prospective customer.

This would enable an airline company to select the interiors and modify or rearrange them according to its needs, a source close to the development told Business Standard in Mumbai on Friday.

TCS is slated to work on the next-generation Boeing aircraft, including the 737 series and newer versions.

When contacted TCS executives declined to comment on the development.

The financial details of the contract were not available. Industry sources speculate that the deal will be somewhere between $30 million and $70 million.