Air India Nears a Deal for 150 Boeing 737 MAX Jets

DALLAS - TATA-owned Air India (AI) is reportedly in final discussions with the American planemaker Boeing for an order of up to 150 737 MAX jets, as stated by the Economic Times newspaper.

If the deal takes place, it will be the first major purchase since the TATA Group took control of the airline earlier this year.

The newspaper reported that AI is likely to place a firm order for 50 airframes initially, with options to pick up as many as 150.

Big Bonus for Boeing

The American manufacturer has struggled to get its single-aisle aircraft flying in India in the past decade, as the A320 family currently dominates the domestic market. Akasa (QP) was the first for some time to break the Airbus tradition and bring in the 737 MAX when it ordered 72 in 2021, in a deal worth US$9bn at list prices.

The AI deal would significantly boost Boeing's presence in the world's fastest-growing aviation industry. 

Boeing is said to have offered delivery slots of March 2023, as the AI airframes would be those previously destined for China Southern Airlines (CZ). Discussions were also reportedly held with Airbus. But lengthy delivery times, stretching up to 2025 and beyond, weren't an option.

In November, TATA and co-owner Singapore Airlines (SQ) announced that AI was to merge with Vistara (UK). It is hoped the two airlines can be combined by March 2024.

https://airwaysmag.com/air-india-and-vistara-to-merge/

Featured Image: AI's current short-haul fleet is made up of Airbus A320 family aircraft. Photo: Alberto Cucini/Airways.