Air India and Boeing officials declined to comment.
Air India Ltd. is considering ordering up to 300 narrowbody jets, according to people familiar with the matter, in what could be one of the largest orders in commercial aviation history as the former state carrier looks to overhaul its fleet under new ownership.
The airline could order Airbus SE’s A320neo-family jets or Boeing Co.’s 737 Max models, or a mix of both, the people said, asking not to be named because the talks are confidential. A deal for 300 737 Max-10 jets could be worth $40.5 billion at sticker prices, although discounts are common on such large purchases.
Winning a narrowbody order in India would be a coup for Boeing as rival Airbus dominates the skies in the country, the world’s fastest-growing aviation market before the Covid pandemic. IndiGo, operated by InterGlobe Aviation Ltd., is the world’s largest customer for the European manufacturer’s best-selling narrowbody aircraft and has ordered more than 700, and others including Vistara, Go Airlines India Ltd. and AirAsia India Ltd. fly planes from the same family.
It would likely take years or even more than a decade to produce and deliver 300 aircraft. Airbus builds about 50 narrowbody jets in a month and plans to increase that number to 65 by mid-2023 and 75 by 2025.
Air India and Boeing officials declined to comment. An Airbus representative said the company is always in touch with existing and potential customers, but all discussions are confidential.
“This order is likely to involve new financing methods to play out properly, including taking into account macroeconomic trends – particularly the fluctuating rupee and rising inflation,” said Satyendra Pandey, managing partner of aviation consultancy AT-TV. “Some airlines have placed large orders only to find they are unable to secure financing on favorable terms. While it’s not an outcome you imagine, and certainly not with a group like Tatas, it still needs to be planned for. “
Air India’s owner Tata Group is also close to ordering long-haul Airbus A350 jets that can fly from New Delhi to the US west coast, Bloomberg News reported this month. The airline, once known for its premium services and promotions featuring Bollywood stars, still has lucrative landing slots at most major airports but faces competition from foreign airlines with non-stop flights to India, as well as airlines that fly over fly hubs in the Middle East.
Tata bought the airline earlier this year in the most high-profile privatization under Prime Minister Narendra Modi. It is expected to consolidate its aviation business, including four airline brands. Ordering new aircraft, especially with favorable terms for long-term maintenance, would help reduce costs and better compete with competitors that offer very cheap fares.
(This story was not edited by NDTV staff and is auto-generated from a syndicated feed.)