Air India will seal half of a billion-dollar order for some 495 jets with Boeing and engine suppliers General Electric and CFM International on Friday, two industry sources said, as its new owner seeks to revive the airline and buy much bigger jets. Wants to compete with rivals.
After months of closely guarded, difficult negotiations, Air India Orders for 190 Boeing 737 MAX narrowbody planes as well as some 20 Boeing 787s and 10 Boeing 777Xs are set to be placed on day one of the year. Bye Sources told Reuters the group took control of the former state-run carrier.
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The second half of orders, which industry sources told Reuters, include about 235 airbus The single-aisle jet and about 40 Airbus A350 widebody aircraft are expected to be formally phased out in the coming days.
Senior Boeing, GE and CFM executives are expected to mark off the deal on Friday in India.
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Despite earlier expectations of a single coordinated announcement, it is unclear when any deal could be publicly disclosed, especially with the Aero India Air Show due in February when such deals are usually announced. come to the fore.
manufacturers boeing And Airbus, as well as CFM’s joint venture partners GE and Safran, declined to comment. Air India did not respond to a request for comment.
Reuters reported last month that Air India was closing in on a deal for around 500 jets.
Read also: Efficiency, cost main focus in Air India-Vistara merger drill
The order, once finalised, aims to bring Air India into the league of large global airlines and make it an influential client for planners and suppliers, at a time when its domestic market has witnessed a post-Covid travel boom going.
Domestic passenger air traffic in India is set to grow 47% in 2022 from a year earlier, government data shows.
Analysts warn that the airline faces stiff competition given the connectivity created by local and international rivals.
India ready to march ahead China As the world’s most populous country, it has a large, under-served air travel market dominated by budget carrier IndiGo. However, the bulk of passenger traffic out of India is carried by Middle Eastern airlines such as Emirates and Qatar Airways. Resurgent Air India Under its new owners, Air India looks to restore its reputation at home and abroad as a one-stop carrier with impeccable service and world-class aircraft.
It has put back into service about 20 aircraft that were grounded for years due to lack of spares and funds. The airline also said it would spend more than $400 million to upgrade its entire legacy wide-body fleet of 27 Boeing 787-8s and 13 777 aircraft.
It aims to capture 30% share of the domestic air travel market in the next five years and thus narrow the gap with market leader IndiGo. The airline’s new chief executive, Campbell Wilson, previously said it was looking to grow its current share of international travel by “multiples”.
Tata’s four airlines, including two budget carriers, Air India and its joint venture Vistara with Singapore Airlines, have a combined market share of 24%.
Analysts have said Air India has the potential to bring back some passengers from rival Gulf carriers, but not before it matches their fleet and quality of service. Nor will the domestic battle with Indigo be without stiff competition from a carrier that continues to expand.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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