Air India likely to place a firm order for 50 737 Max jets, with an option to acquire 150 more
Tata Group-owned Air India Ltd is close to signing a deal with Boeing Co to buy 150 737 Max aircraft, marking the first major aircraft order after the carrier's privatisation, The Economic Times reported citing people familiar with the matter. Said, who was not identified.
The newspaper reported that Air India is likely to place a firm order for 50 737 Max jets, with an option to acquire 150 more. Tata formally took over debt-laden Air India earlier this year.
A Boeing spokesperson declined to comment to The Economic Times. Air India did not immediately respond to a request for comment outside office hours.
The plan to induct more fuel efficient aircraft could help the airline increase its domestic and international market share. Tata's recent decision to merge Air India with Vistara, which it jointly holds with Singapore Airlines Ltd, is expected to create a giant in one of the world's fastest growing aviation markets.
The integration is set to make Air India the country's largest international and second largest domestic carrier with a fleet of 218 aircraft.
Industry sources said in July that Air India was nearing a decision on list prices to be split between Airbus and Boeing on the $50 billion mega order, which included 300 narrowbody and 70 widebody jets.
The reported order would be a win for Boeing, which has said it is looking to boost its capacity in India to keep pace with growing demand in the world's fastest-growing major aviation market.
Boeing's last mega order in India came in 2021 when low-cost airline Akasha signed a deal to buy 72 737 MAX jets, worth about $9 billion at list price.
The Indian sky is dominated by low-cost carriers including IndiGo, SpiceJet and AirAsia India, most of which operate Airbus narrowbody aircraft. SpiceJet, Boeing's biggest customer in India, has an order for 155 MAX aircraft.
The deal would give Singapore Air a 25.1% stake in the merged carrier for an investment of $250 million. The two partners have agreed to infuse fresh capital into the expanded Air India over the coming two years, with Singapore Air's stake potentially worth up to $615 million.
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