Air India Ltd. is considering ordering as many as 300 narrow-body jets, according to people familiar with the issue, which could be one of the largest orders in the history of commercial aviation, as the former state-owned airline wants to overhaul its new fleet.
The carrier can order Airbus SE A320neo family planes or Boeing Co.’s 737 Mak models, or a combination of both, people said, asking not to be identified because the conversations are confidential. A deal for 300 737 Mak-10 jets could be worth $ 40.5 billion at sticker prices, although discounts are common in such large purchases.
Winning a narrow-body order in India would be a blow to Boeing, as rival Airbus dominates the country’s sky, the world’s fastest-growing airline market before the Covid pandemic. IndiGo, operated by InterGlobe Aviation Ltd., is the world’s largest buyer of Europe’s best-selling narrow-body vehicles, ordering more than 700, and others, including Vista, Go Airlines India Ltd. and AirAsia India Ltd., fly airplanes from the same family.
The production and delivery of 300 planes will probably take years or even more than a decade. Airbus is producing about 50 narrow-body jets in a month, with plans to increase them to 65 by mid-2023 and 75 by 2025.
Representatives of Air India and Boeing declined to comment. A representative of Airbus said that the company is always in contact with existing and potential customers, but all discussions are confidential.
“This order is likely to include new financing methods to play the right way, including factors in macroeconomic trends – especially fluctuating rupees and rising inflation,” said Satiendra Pandey, executive partner at aviation advisory firm AT-TV. “Some airlines have given large orders only to find that they are not able to provide financing on favorable terms. Although this is not the outcome that is predicted, and certainly not with a group like Tatas, it still has to be planned. “
Air India’s owner, Tata Group, is also close to ordering long-range Airbus A350 planes that could fly as far as the west coast of the United States from New Delhi, Bloomberg News reported this month. Formerly known for its superior services and advertising with Bollywood stars, the airline still has lucrative slots at most major airports, but faces competition from foreign airlines with direct services to India, as well as carriers flying over hubs in the Middle East. .
Dad bought the airline earlier this year in the most successful privatization under Prime Minister Narendra Modi. It is expected to consolidate its aviation business, including four airline brands. Ordering new aircraft, especially with favorable long-term maintenance conditions, would help reduce costs and compete better with rivals who offer very cheap tickets.
(This story was not edited by NDTV staff and was automatically generated from the syndicated feed.)
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