Air India Delays Boeing Order Amid Backlog Concerns
Air India is postponing its decision to purchase additional Boeing aircraft until the manufacturer can clear its production backlog, CEO Campbell Wilson told Reuters in an interview in London. “We don’t want to commit to anything until we have confidence of when it’s going to come,” Wilson said. “And likewise, they [Boeing] don’t want to offer something until they have confidence of when it’s going to come.”
The delay means that Air India’s planned aircraft order will now take longer to fulfill than originally expected. Despite this setback, Wilson remained optimistic about the airline’s overall turnaround strategy, which is part of its broader Vihaan.AI transformation roadmap. “We expect to get them, but do we expect to get them according to timeline? No, we don’t. And I think that every airline would tell you the same thing,” he added, noting that Air India has been in “constant contact” with Boeing regarding delivery schedules.
Air India, now under the ownership of the Tata Group, has faced significant challenges over the years, partly due to limited investment during its period of state ownership. To address these struggles, the airline launched a comprehensive five-year restructuring plan known as the Vihaan.AI program. This ambitious transformation roadmap includes major updates to its international route network, aimed at ensuring that the best aircraft are deployed on high-priority routes in Southeast Asia and Europe, as well as enhanced services to the US and UK with its upgraded A350s and B777s.
The airline’s revised route strategy will also optimize its flight schedules for key international connections between North America or Europe and Australia or Southeast Asia, leveraging its hubs in Delhi and Mumbai. This network revamp is expected to boost Air India’s competitiveness in the increasingly challenging global aviation market.
The postponement of further Boeing aircraft orders comes on the heels of earlier moves by Air India. In June 2023, the carrier made headlines by ordering 470 aircraft from both Airbus and Boeing as part of its Vihaan.AI program, signaling its commitment to modernizing its fleet and expanding its global footprint. However, challenges in Boeing’s production processes have now introduced delays into the delivery timeline, affecting the airline’s fleet expansion plans.
Recent regulatory actions have also impacted Boeing’s production capabilities. In January 2024, following an incident involving an Alaska Airlines Boeing 737-9 where a door plug separated shortly after takeoff, the Federal Aviation Administration (FAA) imposed a cap on Boeing 737 MAX production to 38 jets per month. This development has further compounded delivery uncertainties for airlines like Air India that rely on Boeing’s fleet.
Despite these setbacks, Air India remains committed to its turnaround plan. CEO Campbell Wilson expressed confidence that the airline will eventually receive the new aircraft, albeit on a revised timeline. The delay in ordering additional Boeing jets reflects a cautious approach in uncertain times, as Air India and other carriers navigate production challenges while working to upgrade their fleets and restore profitability.
With continued dialogue between Air India and Boeing, the airline is poised to adapt its strategy as the production backlog is resolved, ensuring that its long-term modernization goals remain on track.
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