New Delhi: Tata Group officially took over cash-strapped Air India in January 2022 and ever since, it has been their mission to make it a world-class airline. As part of its fleet expansion plans, Air India is set to place a big order for about 500 aircraft as the aviation sector recovers from the Covid pandemic.
As a result of this recovery, there is now more momentum for large orders from airlines who have sort of sat back and watched the movie, and now they’re seeing there’s going to be a positive trend, AirLease Corp executive chairman Steven Udvar-Hazy said at the Airline Economics conference.
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This isn’t the first time that Air India has sought to increase its fleet but in December too, Reuters, citing industry sources, had reported that Air India is about to place an order for as many as 500 jetliners from both Boeing and Airbus.
Udvar-Hazy’s comments are just the first public indication of Air India’s fleet expansion plans.
“We have this 500-aircraft order coming out of India, which is going to be about 400 narrow-body aircraft, probably a mix of (Airbus) A320neos, A321neos and (Boeing) 737 MAXs, and 100 wide-bodies which will include (Boeing) 787s, 777X, potentially some 777 freighters and (Airbus) A350s,” he added.
Not just Air India, but several international operators are looking at increasing their fleet size following the Covid-19 pandemic. Udvar-Hazy exuded confidence that they expect a number of airlines to place large orders with most of them being for a replacement.
Recently, United Airlines had ordered 200 large and small aircraft. China had also placed a block order for Airbus jets last year.
Meanwhile, finalising of Air India’s proposed deal depends on ongoing negotiations with engine makers, Reuters reported quoting industry sources.
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Udvar-Hazy predicted that most carriers would turn back towards medium-sized wide-body jets after significant delays in the development of Boeing’s largest new model, the 400-seat 777X – currently running at five years and potentially rising further.
Air India aircraft order
The Air India order of 500 aircraft, if successful, will be historic not only in Indian aviation but globally. The most recent order of such a magnitude was placed in 2017 by US private equity fund Indigo Partners for 430 aircraft with Airbus. The deal was billed at $49.5 billion for delivery of 274 A320 Neos and 156 A321 Neos. It remains Airbus’ largest-ever order till date.
The Tata-owner carrier plans of commanding 30 per cent global market share in the next five years. It currently commands a 10 per cent market share in India and 12 per cent in the international space.
