Air India has sealed the historic deal of 500 aircraft dividing the order between Airbus and Boeing. The airline has agreed to purchase 250 Airbus jets with 210 single-aisle A320neos, 40 widebody A350s. The Boeing order includes 220 aircraft including 190 narrowbody 737 Max and 20 widebody 787 and 10 777Xs.
Boeing finalised its order on January 27, 2023, but the final signing of the agreement took place on February 10, 2023.
Looking at the list price, the order is set to be worth over $150 billion with the deliveries expected to be over the next eight years.
Experts are of the opinion that, with 400 narrowbody aircraft on order Air India plans to take its rival IndiGo head-on. The massive order is a part of airline’s strategy at modernisation of ageing fleet along with capturing about 30% of the market share in the next five years.
Going ahead, Air India Express and AirAsia India will merge into a single low-cost carrier focusing on domestic operations and taking a large share of 190 B737 MAX aircraft order.
Meanwhile, Vistara and Air India will merge to lead international operations. All of its widebody orders will go to the main Air India, 40 Airbus A350, 20 Boeing 787, and 10 Boeing 777X. The remaining Airbus A320neos are estimated to operate the reimagined carrier's short-haul international destinations.
Commenting on the current state of affairs, Campbell Wilson said: “The number of daily flights has increased by 30%, and weekly international services have risen 63%. Sixteen new international routes have been started or announced (to be launched shortly), and frequency on nine existing ones have been increased. Average daily passengers have risen by 72%, and daily revenue has doubled. Average daily frequency has 81%''.
With start-up Akasa Air coming up with its share of order of new aircraft and revived Jet 2.0 also thinking of placing mixed order of owned as well as leased aircraft and passenger traffic at all-time high, interesting times are about to come for Indian civil aviation industry.