Air India
Air India Ltd. owned by Tata Group is about to close deal with Boeing Co. to buy up to 150 737 Max planes. It will mark the first major aircraft order after the carrier’s privatization.
The plan is to add more fuel efficient planes. It will help the airline to increase its domestic and international market share. Air India with Vistara merge is expected to create a behemoth in world’s fastest growing aviation markets.
The integration is to make Air India the India’s largest international. Also, it will be second largest local carrier with a fleet of 218 aircraft.
A Boeing spokesperson declined to comment on media questions. Air India did not immediately respond to a request for comment outside office hours.
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Industry sources had said in July that Air India was moving closer to a decision on a mega order worth $50 billion at list prices to be split between Airbus and Boeing, which included up to 300 narrow body and 70 widebody jets.
The reported order would be a win for Boeing, which has said that it was looking to boost its capacity in India to keep pace with rising demand in the world’s fastest-growing major aviation market.
Boeing’s last mega order valued at nearly $9 billion at list prices. It came in India in 2021 when low cost airline Akasa struck a deal to buy 72 737 MAX jets,
Indian skies are dominated by low cost carriers. It includes IndiGo, SpiceJet and AirAsia India, with majority of them operating Airbus narrow body planes. SpiceJet, Boeing’s biggest customer in India, has 155 MAX planes on order.
The deal will give Singapore Air a 25.1% stake in the merged carrier for an investment of $250 million. The partners have agreed to inject fresh capital if needed in the coming two years in the enlarged Air India, with Singapore Air’s share potentially as much as $615 million.
