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Air India likely to seal multi-billion dollar jumbo plane order with Boeing: Report

After months of closely-guarded, tough negotiations, Air India is set to place an order for 190 Boeing 737 MAX narrowbody planes as well as some 20 Boeing 787s and 10 Boeing 777X on a day marking one year since Tata Group took control of the former state-run carrier, the sources said.
 

Air India likely to seal multi billion dollar jumbo plane order with Boeing Report gcw
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First Published Jan 27, 2023, 3:01 PM IST

In an effort to revitalise the airline and compete with far larger rivals, Air India will on Friday finalise half of a multibillion dollar contract with Boeing, engine suppliers General Electric and CFM International, and a total of 495 planes.

On the day that marks one year since Tata Group gained control of the former state-run carrier, Air India is expected to announce an order for 190 Boeing 737 MAX narrow body aircraft as well as approximately 20 Boeing 787s and 10 Boeing 777X, according to sources.

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It is anticipated that the second half of the deal, which comprises roughly 235 Airbus single-aisle jets and about 40 Airbus A350 widebody aircraft, would be formally completed during the next few days. Senior representatives from Boeing, GE, and CFM are anticipated in India on Friday to celebrate the transaction.

It is yet unknown when either agreement would be made public, despite early hopes for a single synchronised announcement, particularly with the Aero India air show in February approaching, when deals like this are typically announced.

When the purchase is completed, it would elevate Air India to the level of major international airlines and position it as a significant buyer for suppliers and planemakers at a time when its domestic market is seeing a significant post-COVID travel boom.

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According to government statistics, domestic passenger aviation traffic in India increased 47% in 2022 over the previous year. India, which is set to overtake China as the world's most populous country, has a large, under-served air travel market dominated by budget carrier IndiGo. However, Middle Eastern carriers like Emirates and Qatar Airways carry the majority of outgoing passenger traffic from India.

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