Air India Selects Up to 290 Boeing Jets to Serve Its Strategy for Sustainable Growth

Rhea-AI Summary

Boeing (NYSE: BA) and Air India announced a historic agreement for the carrier to purchase 190 737 MAX, 20 787 Dreamliner, and 10 777X airplanes, marking a significant investment in South Asia's aviation market. The deal includes options for an additional 50 737 MAXs and 20 787-9s. This acquisition is part of Air India's transformative strategy, Vihaan.AI, aimed at enhancing domestic and international connectivity. The 737 MAX promises 20% reduced fuel consumption, while the 787-9 offers 25% better efficiency. Boeing’s order will support jobs across its manufacturing sites in the U.S., underscoring the broader economic impact of this deal.

Positive

• Air India is purchasing 290 Boeing jets, including options for 70 additional aircraft, signaling strong future growth.
• The deal supports Boeing's manufacturing jobs in Washington and South Carolina.
• Boeing's aircraft deliver significant fuel efficiency improvements, aiding Air India's sustainability goals.

Negative

• None.

SEATTLE, Feb. 14, 2023 /PRNewswire/ -- Boeing [NYSE: BA] and Air India today announced the carrier has selected Boeing's family of fuel-efficient airplanes to expand its future fleet with plans to invest in 190 737 MAX, 20 787 Dreamliner and 10 777X airplanes. Along with a comprehensive set of aviation services, Air India is advancing its fleet strategy to sustainably address South Asia's rapidly growing market for domestic and international air travel.

The agreement between Boeing and Air India includes options for 50 additional 737 MAXs and 20 787-9s. When finalized, this will be the largest Boeing order in South Asia and a historic milestone in the aerospace company's nearly 90-year partnership with the carrier. The order will post to Boeing's Orders and Deliveries website when final.

"This acquisition of nearly 300, highly advanced Boeing jets is a core element of Vihaan.AI, the comprehensive transformation and growth strategy we are pursuing at Air India," said Campbell Wilson, CEO and MD, Air India. "These new airplanes will enable us to dramatically expand our network, both domestically and internationally, and will come with a completely new, world-class onboard product enabling passengers to travel in the highest levels of comfort and safety. With this order, we are delighted to take our long relationship with Boeing to a new level."

"Air India's selection of Boeing's family of passenger jets shows their confidence in our products and services in the world's fastest growing aviation market, and their decision will support engineering and manufacturing jobs at Boeing factories in Washington state, South Carolina and across our supply base," said Stan Deal, president and CEO of Boeing Commercial Airplanes. "With the industry-leading fuel efficiency of the 737 MAX, 787 Dreamliner and 777X, Air India is well positioned to achieve its expansion plans and become a world-class global airline with an Indian heart."

Air India has also contracted with Boeing Global Services for lifecycle support services, including digital solutions, spare parts and landing gear exchange programs, pilot and maintenance technician training, aircraft modifications and other services.

The 737 MAX will provide flexibility across Air India's domestic and international network while reducing fuel use and emissions by 20% compared to the airplanes it replaces.

• The 737-8, seating 162 to 210 passengers, depending on configuration, and with a range of 3,500 nautical miles, is the market's most versatile single-aisle airplane, capable of operating profitably on short- and medium-haul routes.
• The 737-10, the largest airplane in the 737 MAX family, offers the best per-seat economics of any single-aisle commercial jet, seating 188 to 230 passengers, depending on configuration with a range of 3,100 nautical miles.

Air India has benefited from the efficiency and flexibility of the 787 Dreamliner family with an existing fleet of 27 787-8s. The larger 787-9 will provide increased capacity, greater range and 25% better fuel efficiency compared to earlier generation jets.

The flagship 777-9 – the world's largest and most efficient twin-engine jet -- will be the largest airplane in Air India's fleet, enabling it to fly passengers non-stop and in enhanced comfort to almost any long-haul destination.

• Unmatched in every aspect of performance, the 777X features a spacious cabin, new custom architecture and innovations from the 787.
• With new breakthroughs in aerodynamics and engines, the 777-9 will provide 10% lower fuel use and emissions and 10% lower operating costs than the competition.

About Boeing
As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing's diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company's core values of safety, quality and integrity. Join our team and find your purpose at boeing.com/careers.

About Air India
Founded by the legendary JRD Tata, Air India pioneered India's aviation sector. Since its first flight on October 15, 1932, Air India has an extensive domestic network and has spread its wings beyond to become a major international airline with a network across USA, Canada, UK, Europe, Far-East, South-East Asia, Australia and the Gulf. Air India is a member of Star Alliance, the largest global airline consortium. After 69 years as a Government-owned enterprise, Air India and Air India Express were welcomed back into the Tata group in January 2022. The present management at Air India is driving the five year transformation roadmap under the aegis of Vihaan.AI to establish itself as a world-class global airline with an Indian heart.

Vihaan.AI is Air India's transformational roadmap over five years with clear milestones.  It will be focusing on dramatically growing both its network and fleet, developing a completely revamped customer proposition, improving reliability and on-time performance. The airline will also be taking a leadership position in technology, sustainability, and innovation, while aggressively investing in the best industry talent. Vihaan.AI is aimed at putting Air India on a path to sustained growth, profitability and market leadership.

Contact
Boeing Media Relations
media@boeing.com

Amber Mizerak
International Sales Comms
Amber.mizerak@boeing.com

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SOURCE Boeing

FAQ

What is the significance of the Boeing and Air India agreement dated February 14, 2023?

The agreement marks Air India's largest order with Boeing, involving the purchase of 190 737 MAX, 20 787 Dreamliner, and 10 777X jets.

How will the new Boeing jets impact Air India's operations?

The new jets will expand Air India's domestic and international network while enhancing fuel efficiency and passenger comfort.

What are the expected benefits of the aircraft purchase for Boeing (BA)?

The deal is expected to support manufacturing jobs at Boeing and strengthen its position in the growing South Asian aviation market.

When will Boeing's orders from Air India appear on the Orders and Deliveries website?

The order will post to Boeing's Orders and Deliveries website once finalized.

What is the fuel efficiency improvement from the new Boeing aircraft for Air India?

The 737 MAX is expected to reduce fuel use and emissions by 20%, while the 787-9 offers a 25% improvement over earlier models.