+
Air India’s aircraft order to be bigger; option to buy 370 more planes
AVIATION & AIRPORTS

Air India’s aircraft order to be bigger; option to buy 370 more planes

Air India's massive 470-plane order to Boeing and Airbus could grow much larger because the airline has the option to purchase an extra 370 planes from the manufacturers, according to chief commercial and transformation officer Nipun Aggarwal.

The current 470-plane order is the largest ever placed by an airline in one go anywhere in the globe, surpassing American Airlines' 2011 order for a total of 460 aircraft. The previous largest order by an Indian carrier was IndiGo's 300-aircraft deal in 2019.

“The order comprises 470 firm aircraft, 370 options and purchase rights to be procured from Airbus and Boeing over the next decade. The Airbus firm order comprises 210 A-320/321 Neo/XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s. We have also signed up for long term maintenance of the engines with CFM International (CFM), Rolls-Royce and GE Aerospace,” Aggarwal said via a post on LinkedIn.

A firm order is the number of aeroplanes that the customer has committed to purchasing. Firm orders are typically accompanied by options, which allow the airline to purchase additional planes at a later date and price. Options, unlike definitive orders, are not binding on the buyer.

When the dual orders were announced on February 14, Boeing said that Air India had the option to purchase an extra 70 planes in addition to the 220 on the firm order. There was no word at the time on whether there was an option in addition to the definitive contract for 250 Airbus planes.

"In addition to the 470 aircraft on firm order, Air India has obtained a number of options and purchase rights. "They provide us the option, but not the necessity, to take further aircraft at already-negotiated production slots and/or pricing, allowing us to nimbly handle further growth while managing risk," Air India CEO Campbell Wilson said in an internal message to employees.

Air India and Air India Express operate a fleet of approximately 140 planes, the most majority of which are narrowbody aircraft. Air India currently relies heavily on Airbus planes for domestic operations, while its widebody fleet is made up of Boeing planes. Air India Express only flies Boeing narrowbody planes.

"The first aircraft to arrive will be 25 brand-new Boeing B737-800s and 6 Airbus A350-900s in the second half of 2023, with deliveries truly ramping up in 2025 and beyond. However, "our capacity growth will be backed by the previously announced lease-in of additional narrowbody and widebody aircraft, as well as the return to service of the remainder of our grounded fleet," Wilson told staff.

Also Read
Embassy REIT raises fund from Bajaj Housing Fin to repay existing loans
CCI approves Dalmia Cement’s acquisition

Air India's massive 470-plane order to Boeing and Airbus could grow much larger because the airline has the option to purchase an extra 370 planes from the manufacturers, according to chief commercial and transformation officer Nipun Aggarwal. The current 470-plane order is the largest ever placed by an airline in one go anywhere in the globe, surpassing American Airlines' 2011 order for a total of 460 aircraft. The previous largest order by an Indian carrier was IndiGo's 300-aircraft deal in 2019. “The order comprises 470 firm aircraft, 370 options and purchase rights to be procured from Airbus and Boeing over the next decade. The Airbus firm order comprises 210 A-320/321 Neo/XLR and 40 A350-900/1000. The Boeing firm order comprises 190 737-Max, 20 787s and 10 777s. We have also signed up for long term maintenance of the engines with CFM International (CFM), Rolls-Royce and GE Aerospace,” Aggarwal said via a post on LinkedIn. A firm order is the number of aeroplanes that the customer has committed to purchasing. Firm orders are typically accompanied by options, which allow the airline to purchase additional planes at a later date and price. Options, unlike definitive orders, are not binding on the buyer. When the dual orders were announced on February 14, Boeing said that Air India had the option to purchase an extra 70 planes in addition to the 220 on the firm order. There was no word at the time on whether there was an option in addition to the definitive contract for 250 Airbus planes. In addition to the 470 aircraft on firm order, Air India has obtained a number of options and purchase rights. They provide us the option, but not the necessity, to take further aircraft at already-negotiated production slots and/or pricing, allowing us to nimbly handle further growth while managing risk, Air India CEO Campbell Wilson said in an internal message to employees. Air India and Air India Express operate a fleet of approximately 140 planes, the most majority of which are narrowbody aircraft. Air India currently relies heavily on Airbus planes for domestic operations, while its widebody fleet is made up of Boeing planes. Air India Express only flies Boeing narrowbody planes. The first aircraft to arrive will be 25 brand-new Boeing B737-800s and 6 Airbus A350-900s in the second half of 2023, with deliveries truly ramping up in 2025 and beyond. However, our capacity growth will be backed by the previously announced lease-in of additional narrowbody and widebody aircraft, as well as the return to service of the remainder of our grounded fleet, Wilson told staff. Also Read Embassy REIT raises fund from Bajaj Housing Fin to repay existing loans CCI approves Dalmia Cement’s acquisition

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code