New Delhi: Air India Ltd., according to people familiar with the matter, is looking at ordering over 300 narrowbody jets, which could be one of the largest orders in commercial aviation history as the formerly state-run airline will be able to keep its fleet under new ownership. wants to overhaul.
carrier can order airbus SE’s A320neo family jet or Boeing Co.’s 737 MAX model, or a mixture of both, people asked not to be identified, because the discussions are confidential. There could be a $40.5 billion deal for 300 737 MAX 10 jets at sticker prices, although discounts are common in such large purchases.
Winning a narrow order in India would be a coup for Boeing, as rival Airbus dominates the skies in the country, the world’s fastest-growing aviation market before the Covid pandemic. Indigo, Powered by InterGlobe Aviation Ltd. is the world’s largest customer for the European manufacturer’s best-selling narrowbodies, which orders over 700, and flies aircraft from the same family, including Vistara, Go Airlines India Ltd and AirAsia India Ltd., among others.
Production and delivery of 300 aircraft is likely to take years or even more than a decade. Airbus makes about 50 narrowbody jets a month, with plans to increase to 65 by mid-2023 and 75 by 2025.
Representatives for Air India and Boeing declined to comment. An Airbus representative said the company is always in contact with existing and potential customers, but any discussions are confidential.
Satyendra Pandey, managing partner at aviation advisory firm AT-TV, said, “This order probably rightly includes innovative ways of funding, including factoring in macroeconomic trends – particularly the volatile rupee and rising inflation.” ” “Some airlines have placed massive orders only to find that they are unable to finance on favorable terms. While this is not an outcome one envisions and certainly not with a group like Tata, it has to be planned for.”
Air India owner Tata Group is also close to ordering Airbus A350 long-range jets, capable of flying from New Delhi to the US West Coast, Bloomberg News reported this month. Once known for its premium services and commercials featuring Bollywood stars, the airline still has lucrative landing slots at most major airports, but it faces competition from foreign airlines with nonstop services in India, As well as carriers that fly through hubs in the Middle East.
Tata bought the airline earlier this year in the most high-profile privatization under Prime Minister Narendra Modi. This is expected to strengthen its aviation business including four airline brands. An order for new aircraft, especially one with favorable terms on long-term maintenance, will help it cut costs and better compete with rivals who offer much cheaper fares.
carrier can order airbus SE’s A320neo family jet or Boeing Co.’s 737 MAX model, or a mixture of both, people asked not to be identified, because the discussions are confidential. There could be a $40.5 billion deal for 300 737 MAX 10 jets at sticker prices, although discounts are common in such large purchases.
Winning a narrow order in India would be a coup for Boeing, as rival Airbus dominates the skies in the country, the world’s fastest-growing aviation market before the Covid pandemic. Indigo, Powered by InterGlobe Aviation Ltd. is the world’s largest customer for the European manufacturer’s best-selling narrowbodies, which orders over 700, and flies aircraft from the same family, including Vistara, Go Airlines India Ltd and AirAsia India Ltd., among others.
Production and delivery of 300 aircraft is likely to take years or even more than a decade. Airbus makes about 50 narrowbody jets a month, with plans to increase to 65 by mid-2023 and 75 by 2025.
Representatives for Air India and Boeing declined to comment. An Airbus representative said the company is always in contact with existing and potential customers, but any discussions are confidential.
Satyendra Pandey, managing partner at aviation advisory firm AT-TV, said, “This order probably rightly includes innovative ways of funding, including factoring in macroeconomic trends – particularly the volatile rupee and rising inflation.” ” “Some airlines have placed massive orders only to find that they are unable to finance on favorable terms. While this is not an outcome one envisions and certainly not with a group like Tata, it has to be planned for.”
Air India owner Tata Group is also close to ordering Airbus A350 long-range jets, capable of flying from New Delhi to the US West Coast, Bloomberg News reported this month. Once known for its premium services and commercials featuring Bollywood stars, the airline still has lucrative landing slots at most major airports, but it faces competition from foreign airlines with nonstop services in India, As well as carriers that fly through hubs in the Middle East.
Tata bought the airline earlier this year in the most high-profile privatization under Prime Minister Narendra Modi. This is expected to strengthen its aviation business including four airline brands. An order for new aircraft, especially one with favorable terms on long-term maintenance, will help it cut costs and better compete with rivals who offer much cheaper fares.