Air India nears deal for 150 Boeing 737 Max jets: Report

With the option to buy up to 150, Air India is most likely to put a definite order for 50 737 Max aircraft.

According to the Economic Times, which cited unnamed sources, Tata Group-owned Air India Ltd. is close to finalising a deal with Boeing Co. to purchase up to 150 737 Max aircraft, which would be the first significant aircraft acquisition since the carrier’s privatisation.

According to the newspaper, Air India is most likely to place a definite order for 50 737 Max aircraft with the option to buy up to 150 more. Earlier this year, debt-ridden Air India was officially taken over by Tata.

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A Boeing spokeswoman declined to comment to the Economic Times. A request for feedback made after business hours did not immediately receive a response from Air India.

The airline may enhance its domestic and global market share with the addition of more fuel-efficient aircraft. A behemoth is anticipated to be created in one of the aviation industry’s fastest-growing sectors as a result of Tata’s recent decision to merge Air India with Vistara, which it partly owns with Singapore Airlines Ltd.

With a fleet of 218 aircraft, the integration is expected to make Air India the largest international and second-largest domestic carrier in the nation.

In July, industry insiders claimed that Air India was nearing a decision on a massive order for up to 300 narrowbody and 70 widebody planes, valued at $50 billion at list prices and split between Airbus and Boeing.

Boeing would benefit from the rumoured deal because it has stated that it wants to increase capacity in India to keep up with growing demand in the world’s fastest-growing significant aviation market.

A deal to buy 72 737 MAX aircraft from low-cost carrier Akasa in 2021, valued at about $9 billion at list prices, was Boeing’s final significant order in India.

Low-cost airlines like IndiGo, SpiceJet, and AirAsia India dominate the skies of India, with the bulk of them flying Airbus narrowbody aircraft. Boeing’s largest customer in India, SpiceJet, has 155 MAX aircraft on order.

Singapore Air will contribute $250 million to receive a 25.1% interest in the combined airline. Both partners have committed to provide additional funding for the expanded Air India, with Singapore Air’s portion having the potential to reach $615 million, if necessary over the next two years.