Report: Air India To Place Massive Aircraft Order - One Mile at a Time

While exact details remain limited for now, Air India is allegedly nearing a record-breaking aircraft order…

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Air India could place biggest aircraft order in history

Air India was privatized roughly a year ago, and is now owned by Tata Group. The carrier’s owners are trying to turn things around for the better. They’ve been making progress, though as you’d expect, the transformation isn’t happening overnight.

It sounds like the biggest part of Air India’s transformation could be revealed shortly. Reuters is reporting that Air India is nearing a historic aircraft order for up to 500 new jets, and the orders could be finalized in the coming days. Orders are expected to be placed with both Airbus and Boeing, and there could be orders for up to 400 narrow body jets, and 100 or more wide body jets.

As far as wide body jets go, the order is expected to include dozens of Airbus A350s, Boeing 787s, and even Boeing 777s (if that’s the case, it would be the first Boeing 777X order in quite some time). Meanwhile for narrow body jets, it seems that the Boeing 737 MAX is the plane Air India is most eyeing. I suspect the priority with the aircraft order is securing delivery slots in the coming years, rather than a focus purely on fleet consistency.

At list prices, these deals would be worth many tens of billions of dollars. The biggest aircraft order ever was from American Airlines roughly a decade ago, when the airline ordered 460 Airbus and Boeing jets. Air India might just beat that record here.

There have been rumors for quite some time of Air India placing a large aircraft order, and previously the Airbus A350 was rumored. As a temporary measure, Air India is leasing some planes to add capacity, including getting some former Delta Boeing 777s.

Air India is expected to order the Boeing 737 MAX

Tata Group seems serious about reinventing Air India

Tata Group was Air India’s initial owner when the company was founded in the 1930s, before it became government owned. I think it goes without saying that Tata Group is serious about turning the airline around, or else the company wouldn’t have bought a money-losing airline with endless issues.

Tata Group’s takeover of Air India was announced roughly a year ago, and initially not much changed. However, it seems that we’re finally now seeing what a transformation could look like.

A couple of weeks ago it was announced that Air India and Vistara will be merging, and that Singapore Airlines will be taking a roughly 25% stake in the airline. Then just a few days ago it was announced that Air India will be spending $400 million updating the interiors of its long haul jets. Now there’s this news about an aircraft order.

For context on the scale of Air India’s aircraft order, Air India and Vistara currently have 218 planes combined. This makes the company the largest international airline in India, and the second largest domestic airline, after IndiGo.

Tata Group now seems to be going all-in on a transformation. If enough money is invested in the airline, I have no doubt that Air India can have a modern fleet and competitive hard product. The question is whether the culture at the company can change, in terms of service, reliability, etc. Singapore Airlines being involved certainly gives me some hope.

If Air India can actually be turned into a good, profitable airline, it might just be the greatest airline turnaround story ever. But that’s also still a big “if” for now.

Air India is expected to order the Airbus A350

Bottom line

Air India is reportedly preparing to announce an aircraft order in the coming days. This could be for up to 500 jets, and orders are expected with both Airbus and Boeing, and for both narrow body and wide body jets.

Air India’s transformation is going full speed ahead, between the merger with Vistara, Singapore Airlines’ ownership stake, long haul cabins being refreshed, and now this. I can’t wait to see how this all plays out.

What are you expecting from Air India’s aircraft order?

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2022-12-11 16:57:50Z
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