Air India has finalised orders for 470 aircraft it had made known earlier this year with Airbus and Boeing. These were formally announced by both airframers at the Paris Airshow.
It was on February 14 when Tata Sons Chairman N Chandrasekaran confirmed the Airbus order in a video conference attended by Prime Minister Narendra Modi, French President Emmanuel Macron, Airbus CEO Guillaume Faury and Union Ministers, Jyotiraditya Scindia and Piyush Goyal.
The Tata Group airline now has firm orders with Airbus for 140 A320neo and 70 A321neo single-aisle aircraft. In addition are 34 A350-1000 and six A350-900 wide-body jetliners, totalling 250 aircraft. Boeing, meanwhile, has firm orders for 190 737 MAX, 20 787 Dreamliners and 10 777X jets, totalling 220 aircraft.
Air India has also opted for an Airbus maintenance and digital package. Campbell Wilson, CEO & MD, said its ambitious fleet renewal and expansion programme would see Air India operate the most advanced and fuel-efficient aircraft across its route network in five years.
Christian Scherer, Chief Commercial Officer and Head of International at Airbus, said the efficiencies, comfort and range capability offered by the latest generation aircraft would contribute to Air India emerging as a world-class premium carrier.
The airline is now the launch customer for Airbus’ Skywise Core X3, the company’s latest and most advanced aviation analytics platform. The Skywise Core X3 order will further aid its transformation and digitalisation journey.
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Maintenance Package
Airbus will help Air India maintain high levels of fleet availability with integrated materials solutions (IMS) from Satair, an Airbus company. Thanks to this maintenance and digital package, every time the airline needs a rotable or a consumable part, the maintenance solution will ensure these parts are readily available and stocks automatically replenished.
With its orders for 40 A350-900s and A350-1000s, Air India will be the first Indian carrier to operate this widebody jetliner. Airbus is slated to deliver the first A350-900 before the end of 2023. The all-new, long-range aircraft will aid Air India’s ongoing expansion of its long-haul market. Its combination of technology, reach and comfort will help with new routes and improved passenger experience.
The A350 is touted by Airbus as being the world’s most modern and efficient wide-body aircraft in the 300-410 seater category. With its new generation engines and use of lightweight materials the aircraft delivers a 25% improvement in fuel burn, operating costs and carbon dioxide emissions, as compared to previous generation competitor aircraft.
Air India has also opted for the longest-fuselage member of Airbus’ best-selling, single-aisle A320 Family, the A321neo, which can seat 244 passengers in a higher-density arrangement or between 180 and 220 in a typical two-class layout. The smaller A320neo can accommodate up to 180 passengers but is typically purchased with seating for 140-179. It is not known if Air India will opt for the A321XLR, which currently has IndiGo as its only Indian customer.
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Boeing Wins Big
Air India has now concluded firm orders with Boeing for 190 737 MAXs, 20 787 Dreamliners and 10 777X jets. It is the US airframer’s largest ever order in South Asia.
CAPA India had predicted a large order from Air India in February, stating that it would come soon after the first anniversary of the acquisition by the Tata Group. “An order of this magnitude could simply not have been contemplated under public ownership. It therefore stands testament to how the divestment of Air India has strategically and positively reset the aviation industry in India,” it had added.
Air India also has options for 50 additional 737 MAX jets and 20 787 Dreamliners. If and when it exercises them, the total orders will swell to 290 aircraft. The airline has also contracted Boeing Global Services for lifecycle support services, including digital solutions, spare parts and landing gear exchange programmes, pilot and maintenance technician training, aircraft modifications and other services.
According to Boeing’s 2023 Commercial Market Outlook (CMO) released in June, the company's forecast of demand over the next 20 years shows that South Asia is expected to more than triple its in-service fleet from 700 to 2,300 airplanes. According to the CMO, the commercial aircraft fleet will expand more than 7% annually (the world's fastest rate) in the region with India accounting for more than 90% of passenger traffic.
Air India’s last major aircraft order in 2005 involved 27 787s, 15 777-300ERs, eight 777-200 LRs and 18 737-800s from Boeing. Indian Airlines, which later merged with Air India, had ordered 43 Airbus A320ceo family jetliners in 2006. Just as with the A350, Air India will introduce the 777X, the largest jetliner built by Boeing, in the Indian market.
It will also induct the 737-8 and 737-10 from Boeing’s 737 MAX family which are likely to be used by its low cost carrier subsidiary, Air India Express, which already operates the 737 NG. This arm will join SpiceJet and Akasa Air as a 737 MAX operator. The 737-10 is the largest variant of the 737 MAX family with seating for 188-230 passengers, while the 737-8 can seat between 162 and 210.
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On Track
Air India’s finalisation of its orders shows that it has obtained the requisite financing and, more importantly, making good progress with its Vihaan.AI five-year transformation plan announced in September 2022. The airline is targeting a domestic market share of at least 30% along with a significant increase in international routes too.
In April, Air India announced the conclusion of the first phase of Vihaan.AI with the second phase focusing on developing platforms, processes and systems needed for its expansion.
The airline is setting up a world-class training academy and identifying the future direction and configuration for its line and base maintenance requirements. The second phase of Vihaan.AI, will also involve the consolidation of group airlines, AirAsia India, Air India Express and Vistara.