Air India to buy 300 planes to regain market share under new ownership

Air India Ltd. is reportedly contemplating placing one of the largest orders in commercial aviation history, of up to 300 narrow-body aircraft as the formerly state-run airline prepares to modernize its fleet under Tata’s supremacy.

Sources claimed that the aircraft carrier may purchase airships from either Boeing Company's 737 Max models or Airbus SE's A320neo family, or a combination of both. Even though availing discounts are normal in such bulk purchases, a deal for 300 737 Max-10 planes may cost USD 40.5 billion at base pricing.

It would be a triumph for Boeing to secure an order for single-aisle aircraft in India, which was the world’s fastest-growing aviation marketplace, before the COVID-19 pandemic, where its competitor Airbus has the upper hand.

Indian low-cost airline InterGlobe Aviation Ltd., operating under the name IndiGo, is currently the largest buyer of Airbus’s narrowbodies in the world and has placed orders of over 700 aircraft to date. Other airlines that steer from the same family include Vistara operated by Tata SIA Airlines Limited, Go Airlines India Ltd., and AirAsia India Ltd.

Interestingly, Airbus produces nearly 50 narrowbody jets per month at present, with plans to increase production to 65 by the mid-2023, and 75 by the year 2025. An Airbus representative cited that the company is constantly in touch with potential and existing buyers, but all communications are kept confidential.

Tata Group, the new owner of Air India is considering placing an order for Airbus A350 long-range aircraft which can fly as far as the U.S. West Coast from New Delhi.  While the airline, once known for its premium services and advertisements starring Bollywood celebrities still has profitable landing slots in many areas, it is likely to face stiff competition from foreign airlines with nonstop services in the country.

The arrangement for new fleets, especially ones with beneficial long-term maintenance provisions, would support the airline in reducing expenses and successfully competing with adversaries that offer incredibly low airfare.

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https://www.business-standard.com/article/companies/air-india-prepares-one-of-the-largest-aircraft-deals-in-aviation-history-122062000183_1.html