Boeing closes on large 737 Max order from Tata Group's Air India

 

• With its large and increasingly mobile population, India has become an important market for planners such as Boeing and Airbus, even as China faces difficulties emerging from COVID

Boeing Co is holding off on an order for 200 of its 737 Max jets from Tata Group, the new owner of Air India Ltd, as the two sides race to complete talks before the year-end holidays, according to people familiar with the matter. Is. with the case.

The final deal is expected to include 40 to 50 MAX aircraft that were built for Chinese carriers but never delivered because of the extended grounding of US jets and escalating trade tensions, some of the people said, asking not to be identified Said because discussions are secret.

A Boeing spokesman declined to comment. Representatives for Air India and Tata did not immediately respond to requests for comment outside normal business hours.

Extensive talks over Air India's fleet makeover have intensified in recent weeks, as the management team eyes sweeping changes, including refreshing the carrier's long-haul fleet with the Airbus SE A350 and Boeing's 787 Dreamliner jets. and leasing of used Boeing 777s to serve international routes. The talks are complex, involve multiple parties including financiers and engine makers, and could drag on into next year, the people warned.

With its large and increasingly mobile population, India has become an important market for planners such as Boeing and Airbus, especially given China's emerging difficulties from COVID. The country's flagship carrier is IndiGo, the world's biggest customer for Airbus' A320neo family of best-selling jets, which is crucial for Boeing to build a better presence in the country.

Bloomberg News previously reported that Tata, which bought Air India back from the government last year for 180 billion rupees ($2.2 billion), is considering an order for 300 narrow-body and 50 wide-body, or twin aisle, planes. Was staying Bloomberg reported in October that Boeing is now offering several 737 Max jets once earmarked for Chinese customers to Air India, as the planner tries to offload some of the roughly 140 planes that have been grounded. Currently distribution is not allowed.

Air India, set up by the Tata founder nearly a century ago before being nationalized in the 1950s, has not made a profit in 15 years. It is now in the early stages of a transformation plan, which aims to increase its Indian market share from around 9% to 30%. The carrier said last week it would invest more than $400 million to refurbish its wide-body jets as it tries to revamp its image.

Tata is also consolidating its four airline units by bringing its Vistara, Air India Express Ltd and AirAsia India ventures under the national carrier's brand. The orders being considered include taking some aircraft on lease with options to buy later, the people said.


Reuters had earlier reported that Air India could order up to 500 jetliners from Airbus and Boeing, citing people in the industry.