Air India Reportedly Close To Placing Half Of Its Mega Aircraft Order

The airline is expected to add around 500 new planes in the coming years.

Air India 777-300ER — Photo: viper-zero | Shutterstock

Air India’s next collective airplane order is said to be one of the biggest in commercial aviation. While the airline has been tight-lipped about it so far, a new report suggests that it could get the ball rolling and place half of the gigantic order on January 27th.

Sealing the deal

Air India could place half of its giant aircraft order on January 27th, according to a report by Reuters. Over the next five to ten years, the airline will add the latest-generation narrowbody and widebody planes from both Boeing and Airbus.

And if reports are to be believed, Boeing could be the first to seal the deal. The report says that Air India has finalized negotiations with Boeing and engine makers General Electric and CFM International and will likely order 190 Boeing 737 MAX aircraft, around 20 787s, and ten 777X planes.

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It has been reported that senior Boeing, GE, and CFM executives will be in India to ink the deal, but it hasn’t been confirmed when Air India will publicly announce the order.

Significance of the day

It’s interesting to note that the deal, if finalized, will take place on January 27th – the first anniversary of the Tata Group officially taking over Air India. Indeed, it could be seen as a huge win for the Tata Group to have sealed an aircraft deal for an airline that, not too long ago, couldn’t even refurbish its grounded planes due to a lack of money and spare parts.

The Boeing deal is only one half of the mega order; Air India is also in talks with Airbus for more than 230 narrowbody airplanes of the A320 family and around 40 Airbus A350s. That order is also likely to be sealed in the coming days.

Photo: Nicolas Economou | Shutterstock

While these long-term orders will be fulfilled over the next few years, Air India is already strengthening its fleet for increased operations. Several of its planes, including Dreamliners and 777s that were grounded, are now back in the air. The carrier has also inducted two former Delta Air Lines Boeing 777-200LRs for its ultra-long-haul flights to North America, with more to come this year.

Many Airbus narrowbodies on dry lease will also join Air India’s fleet this year as the carrier looks to double down on its domestic network, competing with the rival airline, IndiGo.

Integration

Air India’s upcoming merger with Vistara will further consolidate the airline’s fleet, putting it in a much better position about a year from now. Vistara will not order any new planes but will honor its existing aircraft order of 17 planes – 12 Airbus A320neos, one Airbus A321neo, and four Boeing 787-9s.

By the end of 2024, Vistara’s total fleet will be around 70 aircraft, but by then, it will have joined forces with Air India, with the joint entity benefiting from the combined capacity of both airlines.

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Source: Reuters