Air India Rules Out Additional Boeing Jet Orders for Now, CEO Says

Air India is postponing the exercise of its options to purchase additional jets from Boeing until the planemaker has cleared its backlog, CEO Campbell Wilson told Reuters on Wednesday, February 12.

“We don’t want to commit to anything until we have confidence about the delivery timeline. Likewise, Boeing is hesitant to offer more until they can ensure timely fulfillment,” Wilson said during an interview in London.

The airline, formerly state-owned, is undergoing a multi-billion-dollar overhaul to strengthen its market position following its acquisition by Tata Group over two years ago. In 2023, Air India placed an order for 250 new jets from Airbus and 220 from Boeing to rejuvenate its fleet. The deal included options for an additional 70 Boeing aircraft, comprising 50 737 MAXs and 20 787 Dreamliners. This was followed by an additional order of 85 jets from Airbus in October.

Historically, Air India faced numerous challenges due to limited investment under state ownership, which led to the implementation of a significant restructuring plan.

Boeing’s production is currently capped at 38 jets per month, a limit set by the U.S. Federal Aviation Administration following an incident last year when a door blew out on an Alaska Airlines aircraft, leading to increased scrutiny of Boeing’s safety and manufacturing standards.

Wilson mentioned that Air India maintains “constant contact” with Boeing, with the most recent communications occurring last week.

He anticipates that filling Air India’s plane orders will take longer than originally planned, but remains optimistic about the airline’s future prospects. “We expect to receive the planes, but not necessarily on the original schedule. This is a common expectation across the industry,” he explained.

The airline also faces delays with parts and supplies for upgrading its existing fleet, including the installation of more premium seats and in-flight amenities. “We’ve experienced delays from nearly every supplier for each of our seat upgrade programs, ranging from six to eighteen months,” Wilson noted.

Despite the setbacks, Wilson clarified that Air India is not currently considering orders from China’s COMAC, though he did not dismiss the possibility of future collaborations. “If a manufacturer can deliver a product that is safe, reliable, and supported throughout its operational life, we are open to considering alternatives,” he added.

Sources: AirGuide Business airguide.info, bing.com, reuters.com