Air India's Huge Airbus Order Is Thought To Be Finalized

[Skull and Bones]

The flag carrier is expected to make the official announcement sometime next week.


After a rather long wait spanning months, Air India is reported to have finally wrapped the ribbons on its massive aircraft order with European manufacturer Airbus. The finalized order will see the Indian flag carrier ordering 250 aircraft, and the deal is expected to be announced next week. With Valentine's Day around the corner, such an announcement could make an ideal gift to Airbus from Air India.

First to fly the Airbus A350?​

Throughout the past few months, and when Chief Executive Officer Campbell Wilson emphasized that Air India was finalizing its deal with Airbus, the speculations were that Air India would order about 235 single-aisle Airbus aircraft. However, it seems the numbers have since been tweaked.

Out of the approximate 250 aircraft finalized with the European aircraft manufacturer, 40 will be the double-aisle Airbus A350s, allowing Air India to possibly be the first Indian carrier to operate the widebody. Previously, the only Airbus widebodies the flag carrier ever operated were Airbus A330-200s, which have since been withdrawn from use.

The increase in double-aisle aircraft numbers from previous speculations will also allow Air India to expand its widebody fleet further and pit itself ahead of its competitors. Currently, Indian carriers operate fewer than 50 widebody aircraft, signaling a total waste of capacity when there are certainly high demands.

And perhaps the cherry on top is that Airbus has some A350s fresh and ready off the production lines, just waiting for new airline owners. Once the deal is announced and wheels are set in motion, Air India could well be operating the Airbus widebodies by the second or even third quarter of this year.

First to place a mega order?​

But besides the likely possibility of being the first Indian carrier to fly the Airbus A350s, the order with the European manufacturer will be historic in its own right. Air India last made a purchase in 2005 for 111 aircraft, including 43 from Airbus and 68 from Boeing. The deal at that time was worth an estimated $10.8 billion.

The purchase from Airbus this year will certainly be of higher value since the quantity is already significantly larger. And once Air India eventually finalizes the deal with Boeing at a later time, which is expected to be around 200 aircraft, the concluded agreements with both manufacturers will make the total mega order one of global aviation's most significant aircraft purchases.

But besides being such a monumental milestone for Air India and the worldwide aviation industry, this mega order is the first to come within the Indian aviation industry, which is set to see various airlines placing mega orders within the next couple of years. With Air India making the first and possibly one of the larger moves, the likely numbers from other Indian carriers could see anywhere between 1,500 to 1,700 aircraft ordered by 2024.

Bottom line​

Although this makes the fourth consecutive week of an Air India order rumor, at least this time, we're genuinely one step and less than one week away from Air India's long-awaited order announcement. At least, on the Airbus side of the mega order.

Overall, it will signify the highly anticipated start of the Star Alliance member's fleet renewal and the beginning of a rapid change across the Indian aviation industry.

https://simpleflying.com/air-india-airbus-order-reportedly-finalized/