Categories: Business

Air India’s Mega Jet Deal with Airbus, Boeing Held up by Engine-Cost Debate

Air India Ltd orders 500 aircraft from Airbus SE and Boeing Co is being held up by an impasse with engine makers powering the 737 Max dragging out one of the biggest single purchases in the history of civil aviation. CFM International, the General Electric Co., and Safran SA Joint venture are reluctant to offer big discounts on engines and maintenance that typically accompany mega orders. The deadlock centers on the hourly rates Air India would pay for repairs.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

Air India’s Mega Jet Deal with Airbus, Boeing Held up by Engine-Cost Debate- Key Points

  • The engine venture and its rival, Raytheon Technologies Corp’s Pratt & Whitney division are grappling with earlier-than-expected repairs on the latest generation of turbofans for Boeing and Airbus workhorse jets.
  • It has made it tough for the manufacturers to model revenue and costs over the lifespan of the engines.
  • A key consideration for GE Chief Executive Officer Larry Culp as the industrial conglomerate moves forward with a corporate breakup that will leave aviation as its core business.
  • Air India has spent months negotiating an order of about 400 narrowbody and 100 widebody jets that would allow the country’s flag carrier to upgrade service and reliability.
  • A representative for CFM declined to comment noting the confidentiality of customers’ conversation.
  • Dealing with aircraft commitments is gaining urgency for Air India parent Tata Group because supply for newly built jetliners has become increasingly constrained.
  • China is reopening to travel, and the country allowed the 737 Max to fly again after being blocked from the market for several years.
  • Airbus has informed that the earliest slot for an A321 is now in 2029 though customers can sometimes score earlier deliveries if another handover falls through.
  • CFM is the sole supplier of engines for the Boeing 737 aircraft family, while Airbus’s A320 can be powered by either CFM or Pratt Models.

Find More Business News Here

Mahesh Kumar

Working as an SEO Manager at Adda247, I bring over 10 years of experience in Search Engine Optimization (SEO) and digital marketing. I specialize in driving organic growth through data-driven strategies, including keyword research, on-page SEO, off-page optimization, and technical SEO. My area of expertise in the EdTech sector, specifically focusing on competitive exams such as Bank, SSC, Railway, UPSC, and various State Government job examinations.

Recent Posts

International Clouded Leopard Day 2026: Date, Theme, Facts, Conservation Status and India’s New Action Plan

International Clouded Leopard Day is celebrated every year on the 4th of August in order…

20 minutes ago

Karnataka Cabinet Expansion 2026: 19 Ministers Inducted into CM D K Shivakumar’s Cabinet

Under the Chief Minister D K Shivakumar led government, on 3rd of August 2026 inducted…

49 minutes ago

RBI Appoints Monisha Chakraborty as Executive Director from August 3

Reserve Bank of India (RBI) has appointed Monisha Chakraborty as its Executive Director (ED), effective…

1 hour ago

Tamil Nadu Leads in Deceased Organ Donation, Ranks Second in Transplants

In the year 2025, India has achieved a milestone in the organ transplantation, as it…

2 hours ago

Ramsar Sites in India 2026: State-Wise List of All 101 Ramsar Sites, Latest Updates, Largest & Smallest Wetlands

India has become a global leader in the conservation of wetlands by continuously extending the…

3 hours ago

Glaw Lake Becomes Arunachal Pradesh’s First Ramsar Site, India’s Tally Reaches 101

Glaw Lake in Arunachal Pradesh is now India’s 101st Ramsar Site, wthis announcement was made…

3 hours ago