Massive Aircraft Order Coming

Air India looks set to place a mammoth new commercial aircraft order for wide-body jets, with Airbus and Boeing in contention to secure the contract. No, this is not Groundhog Day, although I'm sure it would certainly feel like it. It has been time and time again that the Indian company has looked to purchase new planes, this time reported by Reuters. They're seeking potentially over 50 jets, but maybe a more modest total of around 40, which will add to the hundreds of units that are already in the company's backlog. According to several sources close to the airline, Airbus and Boeing firmly remain in contention for the deal, which is still being finalized, and not necessarily close to an announcement. If the deal proceeded as currently believed, it would likely be split down the middle, with Airbus and Boeing getting equal share of the purchase. Your A350 and 777X are likely considered the ideal options, with the 787 maybe being a bit too modest for what the company is looking for, at least per current reporting. These aircraft types are either already flying or remain in the airline's backlog awaiting delivery. Therefore, a new deal would simply represent a top-up purchase to align with future ambitions and to meet the demand that'll be seen as available, and also to renew that fleet. Talk of a new order comes remember also just a few years after they committed to almost 500 firm planes from Airbus and Boeing to transform their business in the long run under that all-important new ownership. The carriers already going back for seconds and thirds certainly indicates an appetite to grow that backlog for the future and fend off emerging competition. The 777X already has 10 units ordered from the Indian flag carrier, while there are 50 A350s, both to play an integral role in different manners. However, Boeing you feel would no doubt be hopeful to secure more orders for their upcoming wide-body jet and who better than from Air India, a company really looking to grow for the future. The existing aircraft purchases paired with the upcoming one planned by the Indian company underscores that their own direction is a firm one as they are put under the wings of new ownership. Since taking on the beaten carrier from the Indian government, that new ownership I speak of has committed quite heavily to turning around the fortunes of the airline and investing some quite enormous amounts of money not really previously seen in such quick succession. Those investments have ranged from the purchase of new aircraft immediately to completely retrofitting the interior cabin to elevate customer satisfaction levels and compete more strongly with established airlines in the region and neighbouring locations. However, Air India's plans have been hampered by ongoing supply chain shortages and challenges at aircraft manufacturers. These manufacturers have been unable to deliver commercial aircraft on time and in some cases, the jets that Air India are expecting to take delivery of remain uncertified. In recent comments, Air India's CEO Campbell Wilson stated that challenges with aircraft are expected to continue for the next four to five years and will hamper their own growth ambitions that have been laid out. These present challenges in the business see them forced to retain older, less efficient planes. However, they're aware there's not all that much they can do considering the challenges are largely out of their hands. If anything, they feel that their hands are pretty much tied behind their back and it certainly is an interesting observation from them. So, a new aircraft order from Air India seems to be on the cards. Keen to hear your take, A350 or 777X, if they are splitting it down the middle, do you believe it should be even or do you feel Air India would be better suited to one or the other? Thank you very much for watching this video. Do take care, do be safe and I'll see you tomorrow for your next industry recap.