Airbus, Boeing and Air India inks agreement
In an effort to rebuild itself with a fleet that can compete with regional low-cost rivals and strong Gulf airlines like Emirates, Air India Ltd. has signed deals with Airbus SE and Boeing Co. for what may end up being the largest acquisition of aircraft in commercial aviation history.
Air India inks agreement with Airbus, Boeing: Key Points
- According to people involved with the talks, who not to be named because the conversations are private, the airline and the two planemakers have agreed on the broad strokes of the agreement and may publicly announce the contract as early as next week.
- According to the sources, Airbus is in line to get roughly 250 orders and commitments total, made up of 210 aircraft from the A320 single-aisle family and 40 wide-body A350s.
- With 190 737 Max aircraft and the option for 50 more, 20 787 Dreamliners and the same number as a potential top-up, coupled with 10 777x aircraft, Boeing has secured roughly 290 potential acquisitions.
Agreement between Airbus, Boeing and Air India
The deal’s complex structure, which consists of firm orders, memorandums of understanding, and letters of intent—both of which are less binding than an outright purchase agreement—could lead the final total to vary, according to the sources. Airbus, Boeing, and Air India representatives declined to comment.
The significant acquisition, which Air India and its parent company, Tata Group, spent months negotiating, should enable the airline to improve service and dependability while reducing fuel costs. Additionally, it’s an effort by the illustrious airline, which was established in the 1930s by Tata, to reclaim customers from rival Gulf carriers like Emirates or Qatar Airways, which have built a business model around transporting Indians to the US and Europe via their massive hubs in Dubai and Doha.