For now: Air India Rules Out New Boeing Aircraft Orders
Air India has decided to postpone the execution of its pending options for the purchase of additional Boeing aircraft until the manufacturer clears its current backlog of orders. This was confirmed by the airline’s CEO, Campbell Wilson, in an interview with Reuters.
Decision Based on Delivery Confidence
Wilson explained that the airline does not want to commit to new acquisitions until it is certain that the aircraft will arrive on the stipulated dates. Similarly, Boeing also does not want to offer new orders without being sure that it can meet the delivery deadlines.
This decision comes amid an ambitious renewal process for Air India, following its acquisition by the Tata Group more than two years ago. With fierce competition in the market, the airline is investing billions of dollars to modernize its fleet and improve its service.
→ Without More Orders, Boeing Will Not Set Up Assembly Line in India
A Multibillion-Dollar Order with Airbus and Boeing
In 2023, Air India placed a massive order for 470 aircraft, split between Airbus and Boeing: 250 units for the European manufacturer and 220 for the American one. Additionally, the airline signed purchase options for 70 additional Boeing aircraft, including 50 units of the 737 MAX and 20 of the 787 Dreamliner.
However, in October 2024, the airline expanded its investment with the acquisition of 85 additional aircraft from Airbus, further strengthening its commitment to the European manufacturer.
Factors Affecting Boeing’s Deliveries
Boeing faces a production limit of 38 aircraft per month, imposed by the Federal Aviation Administration (FAA) of the United States. This restriction came after an incident involving an Alaska Airlines 737 MAX 9, in which a door detached mid-flight, leading to increased scrutiny of the company’s safety and manufacturing procedures.
Wilson assured that Air India maintains constant contact with Boeing and that the most recent communication took place last week. However, the airline expects the delivery schedule for its aircraft to be slower than initially anticipated.
Delays in Air India’s Transformation
The delays not only affect the arrival of new aircraft but also the process of refurbishing the interiors of the current fleet. Air India aims to enhance its onboard experience with premium seats and more advanced entertainment options, but delays in the delivery of supplies and parts have impacted the schedule.
“We have experienced delays in virtually all of our seat upgrade programs, some as short as six to nine months, others as long as 18 months,” Wilson stated.
These delays have extended the time needed to complete the product transformation longer than expected.
Air India and the COMAC Alternative
Despite the issues with Boeing, Air India is not currently considering acquiring aircraft from COMAC, the Chinese aircraft manufacturer. However, Wilson left open the possibility of evaluating options in the future if certain key requirements are met.
“If someone can produce a safe, reliable product and can commit to maintaining it throughout its operation, I think we would never be closed to alternatives,” the CEO affirmed.
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