Landmark Deal Boeing’s Largest South Asian Order to Date

Air India announced on 14 February 2023 that a deal had been struck by which the New Delhi-based air-carrier will advance the revitalization of its fleet by dint of an initial purchase of two-hundred narrow and wide-body Boeing jets. The agreement comprises 190 737-MAX, twenty 787-Dreamliner, and ten 777X aircraft—and includes options for an additional fifty 737-MAX single-aisle, and twenty 787-9 long-range airliners.

Upon its finalization, the deal will stand as Boeing’s largest one-time South Asian order to date, and mark an historic milestone in the American aerospace giant’s nearly ninety-year partnership with the Indian national airline.

The acquisition’s scope and value speaks to Air India’s ambition to sustainably address South Asia's rapidly growing market for domestic and international air travel.

Air India CEO and managing director Campbell Wilson stated: "This acquisition of nearly three-hundred, highly-advanced Boeing jets is a core element of Vihaan.AI, the comprehensive transformation and growth strategy we are pursuing at Air India.”

Mr. Wilson added: "These new airplanes will enable us to dramatically expand our network, both domestically and internationally, and will come with a completely new, world-class onboard product enabling passengers to travel in the highest levels of comfort and safety. With this order, we are delighted to take our long relationship with Boeing to a new level."

Boeing Commercial Airplanes president and CEO Stan Deal echoed Mr. Wilson’s enthusiasm, setting forth: "Air India's selection of Boeing's family of passenger jets shows their confidence in our products and services in the world's fastest growing aviation market, and their decision will support engineering and manufacturing jobs at Boeing factories in Washington state, South Carolina, and across our supply base. With the industry-leading fuel efficiency of the 737-MAX, 787-Dreamliner, and 777X, Air India is well-positioned to achieve its expansion plans and become a world-class global airline with an Indian heart."

In addition to securing a veritable windfall of new aircraft, Air India has contracted with Boeing Global Services (BGS)—a dedicated service business that addresses the aftermarket needs of Boeing’s worldwide commercial, defense, and space customers—for lifecycle support services, including digital solutions, spare parts and landing gear exchange programs, pilot and maintenance technician training, aircraft modifications, and other services critical to safe, sustainable, and profitable aircraft operations.

In October 2022, Air India, was acquired by the Tata Group—a Mumbai-based, Indian, multinational conglomerate with a combined market capitalization of $311-billion.

By virtue of its landmark agreement with Boeing—and a similarly sizable, as-of-yet unconfirmed deal with Airbus—Air India seeks to establish itself among the world’s foremost airlines, thereby strengthening its influence over plane-makers and aerospace suppliers.

To further actualize its aims, Air India has pledged to dedicate in excess of $400-million to the refurbishment of its legacy wide-body fleet of 27 Boeing 787-8 and 13 777 aircraft.

In recent months, the airline has returned to service nearly twenty aircraft formerly grounded for want of parts and money.

Analysts posit Air India will win passengers from rival Middle Eastern carriers, but not before the modernity of its fleet and the quality of its service equals the surpassing standard for which airlines the likes of Etihad, Emirates, and Qatar Airways are renowned.

In the near-term, however, the Tata Group’s commitment to fostering Air India’s preeminence is abundantly evident, and quantifiable in billions of dollars.

FMI: www.boeing.com