Air India is close to signing a deal with Boeing to purchase 150 Boeing 737 Max jets, reported The Economic Times (ET). The report said that Air India is likely to place a firm order for 50 737 Max with an option to acquire as many as 150.
This would be Air India’s first major deal after it was acquired by Tata Sons. Tata formally took charge of the debt-laden airline earlier this year. The purchase of Boeing 737 Max is being seen as Air India’s plan to add more fuel-efficient planes, which may help the airline to increase its domestic and international market share.
Recently, Tata group also decided to merge Air India with Vistara, which it jointly holds with Singapore Airlines Ltd. It will make Air India the country’s largest international and second-largest domestic carrier with a fleet of 218 aircraft.
Air India is working on a transformational roadmap named “Vihaan.AI.” Over the next 5 years, Air India plans to increase its market share to at least 30 per cent in the domestic market while significantly growing the international routes from the present market share.
Air India recently announced that it will spend $400 million to overhaul the cabins of its Boeing 777 and 787 aircraft and introduce a premium economy service on medium- and long-haul routes. The refurbishment plan and capacity expansion will help the airline grow its market share.
In this refurbishment, the airline will see a complete overhaul of existing cabin interiors, including the addition of the latest-generation seats and best-in-class inflight entertainment across all classes.
For Boeing, this deal with Air India would be its first big sale deal in the country after it sold 75 aircraft to Akasa Air last year. The low-cost aviation industry of India is dominated by Airbus’ narrowbody planes, with IndiGo, SpiceJet, and AirAsia India operating most of these aircraft. In India, SpiceJet is Boeing’s Second biggest customer. SpiceJet has ordered 155 MAX planes.