Air India poised for one of the biggest aircraft deals in history | Business & Economic News

The airline plans to order up to 300 narrow-body jets from Airbus or Boeing or both.

go through Bloomberg

Air India Ltd is considering ordering as many as 300 narrow-body jets, which could be one of them, according to people familiar with the matter maximum order In the history of commercial aviation, the former state-owned airline is looking to overhaul its fleet under new ownership.

The airline may order Airbus’ A320neo family of jets or Boeing’s 737 Max models, or both, the people said. They asked not to be named because the discussions are confidential. Deal for 300 737 Max-10 jets could be worth $40.5 billion list pricealthough discounts are common on such a large purchase.

Winning orders for narrow-body planes in India will be a coup for Boeing as rival Airbus dominates the country’s skies, the world’s fastest-growing aviation market before the coronavirus pandemic. IndiGo, operated by InterGlobe Aviation Ltd., is the world’s largest customer for the European manufacturer’s best-selling narrow-body aircraft, with more than 700 on order, with others including Vistara, Go Airlines India Ltd. Aircraft from the same family as AirAsia India Ltd.

The production and delivery of 300 aircraft can take years or even more than a decade.Airbus built about 50 narrow-body aircraft in a month, including plan 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 has been in touch with current and potential customers, but any discussions are confidential.

“The order may involve new financing methods that work in the right way, including taking into account macroeconomic trends – especially rupee volatility and rising inflation,” said Satyendra Pandey, managing partner at aviation consultancy AT-TV. Lots of orders, only to find that they can’t get financing on favorable terms. While it’s not what people imagined, certainly not a group like Tata, but 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, according to Bloomberg. report This month. The airline, once known for its premium service and Bollywood star ads, still has lucrative landing slots at most major airports, but it faces challenges from foreign airlines offering non-stop services to India as well as flights via Middle East hubs airline competition.

Tata bought the airline earlier this year in the most high-profile privatisation under Prime Minister Narendra Modi. It is expected to consolidate its aviation business, including four airline brands. Ordering new planes, especially those with favorable terms on long-term maintenance, will help keep costs down and compete better with competitors offering very cheap fares.

Source link