Air India group’s potential mega aircraft deal has made headlines in the last few days. While there has been no official announcement, and we don’t know the exact composition of the orders, latest reports suggest that it will include several Boeing 737 MAX aircraft for Air India Express.
50 MAXs
Air India group will likely announce massive aircraft orders worth billions in the coming days. The deals will include airplanes from Boeing and Airbus and for both widebody and narrowbody aircraft.
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While we don’t know what the consolidated order would look like, it is highly speculated that many of the narrowbody planes would include the Boeing 737 MAX aircraft. And latest reports suggest that many of these types could go to Air India’s regional low-cost international arm Air India Express. The Press Trust of India (PTI) quotes a source as saying,
“Air India has almost finalised the deal with Boeing to acquire 50 Boeing 737 MAX planes for Air India Express.”
The inclusion of the MAX aircraft in Air India’s larger fleet is not surprising. Boeing has reportedly been eyeing the airline as one of the potential customers of several undelivered MAX jets sitting at its facilities. Just days ago, it was reported that Air India could order up to 150 of the type, with Boeing promising the carrier immediate delivery of 50 while-tails originally meant for China Southern.
These planes will be part of Air India’s larger order of up to 500 aircraft, of which nearly 400 are said to be narrowbodies. While the A320 family of jets are likely to feature in the deals, Airbus’ booked slots for the next few years have presented an opportunity for Boeing to swoop in with a deal.
Need for more planes
Air India Express has not inducted any new planes in its fleet for a long time. The airline is said to have drawn up a business plan in 2018, which envisioned it to be a 50-aircraft company by 2025. However, the government initially did not give the green signal to the plan, which was further delayed by the disinvestment process and COVID-19.
Anticipating a strong winter season, the airline also recently decided to rope in two of Vistara’s Boeing 737 aircraft to meet immediate demand. If Boeing delivers the 50 planes as promised, Air India Express could finally start to implement its long-term expansion strategy that has been put on hold.
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Big plans
Earlier this year, it was reported that the Tata Group could infuse up to $100 million into Air India Express to add new planes and increase its network. Its fleet is slated for big changes following a merger with AirAsia India that will allow it to start several new short-haul international routes.
Indeed, at the Routes Asia 2022 event in Da Nang, Air India Express’ Chief of Commercial Tara Naidu said the budget carrier wants to grow its network further and is exploring close to 30 countries to expand into, including Cambodia, China, Indonesia, the Philippines, Turkey, and Vietnam.
With all the new planes scheduled to arrive in the near future, Air India Express’ network map will likely look a lot bigger.
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