Air India is currently engaged in advanced negotiations to acquire a substantial fleet of widebody jets from leading aerospace companies, Boeing and Airbus, as part of its ongoing transformation under the Tata Group, as reported by The Economic Times. The prospective deal, valued at several billion dollars, may encompass the purchase of between 30 to 40 jets, with the potential to surpass 50.
In contrast to previous acquisitions that primarily concentrated on single-aisle aircraft intended for domestic and short-haul international operations, the current discussions are focused on widebody jets. These aircraft, designed for longer-range journeys, are essential for Air India’s ambitions to re-establish itself as a formidable player in the international aviation arena, especially in competition with major global airlines such as Emirates, Lufthansa, and Turkish Airlines.
Airbus A350 and Boeing 777x
Air India is particularly interested in the Airbus A350 and the Boeing 777X, both of which are tailored for long-haul international flights. A more defined understanding of the deal’s particulars may surface as the Paris Air Show approaches in June, a pivotal event for global aviation transactions.
Neither Air India nor the aircraft manufacturers have publicly disclosed any information regarding the discussions. However, should this order be finalized, it would further bolster Air India’s ambitious growth and modernization strategy, which has already seen the airline commit to acquiring 470 aircraft from both Boeing and Airbus in 2023, in addition to an extra 100 Airbus planes in the previous year.
The airline has already ordered 50 Airbus A350s, 10 Boeing 777Xs, and 20 Boeing 787 Dreamliners as part of its earlier agreements.
This potential expansion is occurring amidst a rapidly growing demand for international travel from India. According to the ratings agency ICRA, international passenger traffic originating from the country is anticipated to rise by 15-20% in the current financial year, while domestic travel is projected to grow at a more modest pace of 7-10%.
Global supply chain disruptions delay deliveries
In spite of its ambitious expansion plans, Air India is facing challenges with delivery delays stemming from global supply chain disruptions. CEO Campbell Wilson recently indicated that these issues could persist for at least four more years, implying that while Air India aims to refresh its fleet, it will still have to depend on older aircraft for the foreseeable future. This situation has also prolonged Tata’s initial five-year transformation plan for the airline.
Currently, it is expected that Air India and its budget subsidiary, Air India Express, will receive approximately 20 aircraft (a mix of narrowbody and widebody) in 2025, as per aviation consultancy Cirium Ascend.
Air India is not alone in its quest for additional widebody aircraft. Airlines around the globe are striving to secure early delivery slots, as the production of large aircraft continues to be constrained due to heightened demand. Rapidly growing airlines, including India’s largest carrier, IndiGo, have placed substantial orders for narrowbody planes, thereby increasing pressure on aircraft manufacturers.
Competition with Global Airlines
Air India is striving to reclaim the market share it has lost to global rivals such as Emirates, Lufthansa, and Turkish Airlines, who have drawn Indian travelers with their state-of-the-art aircraft and superior premium cabin offerings.
At present, Indian airlines account for approximately 43-44% of the outbound international passenger traffic from India, while foreign carriers continue to hold a significant lead, as reported by ICRA.
To facilitate its growth, Air India and its budget subsidiary, Air India Express, are anticipated to receive around 20 new narrowbody and widebody aircraft this year, according to UK-based consultancy Cirium Ascend.
What to know of the 777X program
The Boeing 777X will be an upgraded iteration of the 777X, integrating some of the advanced technologies found in the Boeing 787 along with additional innovations. This aircraft aims to keep the 777 relevant and equipped to compete with the Airbus A350 for the foreseeable future. Unlike earlier 777 models that had the option of three engines, the 777X will solely rely on the GE Aerospace GE9X engine for power.
Boeing asserts that the Boeing 777X “will be the largest and most efficient twin-engine jet in the world, unparalleled in every performance metric. With new advancements in aerodynamics and engines, the 777X will achieve a 10 percent reduction in fuel consumption and emissions, as well as a 10 percent decrease in operating costs compared to its competitors.”
The introduction of the Boeing 777-8F has been postponed, with the entry date now rescheduled to 2028 or 2029. Concurrently, Boeing will cease production of the 767F in 2027. In October 2024, Air Cargo News reported, “Boeing recorded a total of 10 orders for 767-300Fs in 2022, from UPS and FedEx, but Boeing’s order data indicates no additional orders in 2023 and 2024.”
The 777X freighter was initially expected to enter the market in 2027. However, it now appears that the Airbus A350F will debut before the 777-8F. Qatar Airways is slated to be the launch customer for the 777-8F, now facing a wait of over six years from when it placed its order in 2022 until it finally receives its aircraft.
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