Air India continues to make headlines and for all the right reasons, after announcing the Singapore Airlines – Vistara + Air India merger and ambitious plans of investing $400 million to revamp the cabin interiors, Air India is about to place a historic order of 500 jets with a mix of widebody and narrowbody from Boeing and Airbus. The order could include almost 400 narrowbody and 100 widebody, Reuters reports.
As per the sources, the talks are in the final stage and could be confirmed soon. The order could go up to $100bn in list price including massive discounts.
As of now, no official statement is made by Airbus, Boeing, or Air India.
The delivery of these jets is expected to spread over the next decade and will result in a massive overhaul of Air India’s fleet. According to the latest reports, it is said that Air India could order up to 150 Boeing 737 MAX jets as Boeing is promising an immediate delivery of 50 planes marked for China Southern. It is also said that these planes could go to Air India Express. This will be the first major order for Boeing in India since the sale of 75 aircraft to Akasa Air.
Air India is said to have examined all options for widebody airplanes and could go for a mix of all the popular twin-engine jets such as the A350, B777, and B787 with Airbus looking to utilize several slots initially meant for Aeroflot.
According to the latest Reuters report, Boeing might have an edge over Airbus it has promised to deliver 50 737 Max planes as soon as early next year, while Airbus could not promise deliveries of A320 Neo until 2025.
Under new management under CEO Cambell Wilson, Air India has unveiled major expansion plans, which involve winning a 30% market share both on domestic and international routes in the next five years.
The airline recently roped in British brand and design consultancy firm Futurebrands to rework the Tata Group airline’s branding strategy. Futurebrands, which has worked with American Airlines and automaker Bentley, will redraw Air India’s identity to make it more appealing to a global audience. Sources have claimed that the airline may also be considering a new mascot as the 76-year-old ‘Maharajah is considered outdated by some within the company.
However, as of now, one of the biggest hurdles to cross for Air India is to recapture the domestic market in India, which has been taken over by IndiGo. The new entrants like Akasa Air and the relaunch of Jet Airways on the cards, the competition will get even fiercer for the Maharaja. The massive order of narrowbody planes expected to arrive in the coming years will position Air India as a close competitor to IndiGo.