The number of jets airlines fly in India could double after signing massive aircraft deals with Boeing and Airbus.
What is the Complete Story?
Record-setting Aircraft deals have been announced by the world’s two largest jet manufacturers by surging demand from regional Indian airlines.
It signals a possible resurgence for a commercial aviation industry battered by a years-long covid-induced malaise. Massive deals could also be amid a government plan to build 100 airports in the country by 2024.
It could double their order from 600 to 1200 jets. However, their motive behind doing this is to revamp their transport infrastructure, making air travel cheap and accessible.
What were the Deals?
During a Paris Show in Le Bourget, Boeing announced that it has finalized that the fast-growing Air India will receive up to 220 commercial jets with options for another 70 planes.
It is something like 190 737 MAXs, 20 787 Dreamliners, and 10 777X jets.
On the other hand, Indian airlines also receive a deal of around 250 jets from Boeing’s European Rival, Airbus; 210 A320neo, A321neo narrow-body jets, and 40 A350 widebodies.
These massive deals cost around $70 billion. But these types of deals are discounted by about 25%. However, changes may be made in the pricing based on advancements in technology and regulation.
Earlier, IndiGo also placed an order for 500 Airbus A320 passenger planes. It was considered one of the largest deals in commercial aviation’s history.
What will be the Impact of these Massive Deals?
According to Air India CEO Campbell Wilson, these massive deals will allow Air India to operate the most advanced and fuel-efficient aircraft. It would also bolster the position of India globally.
In February, the deals were announced, but they were made official this week only. Wilson made a statement that they’re proud to work with all partners, including Airbus, in this journey to rebuild a global airline, reflecting India taking a more confident posture worldwide.
Airbus’s Chief Commercial Officer also made a statement that these massive deals would lead to Air India’s expansion. The officer said it is one of the most ambitious projects in the airline business history.
Stan Deal, CEO of Boeing, said the deal shows Air India’s belief and confidence in our products in the world’s fastest-growing aviation market.
According to a commercial aerospace analyst at Boyd Group International, Mike Boyd said, Airbus is known for manufacturing the most attractive jets on the market. But currently, they are in a production chokehold after backlogged with orders, leaving them unable to fulfill Air India’s complete demand.
Boyd made a statement that Airbus couldn’t meet the demands, even though they called up their friends in Seattle. On the other hand, Boeing seems to be in the descendary with this massive deal.