Air India, IndiGo back to big aircraft orders

Air India, IndiGo Back to Big Aircraft Orders
India’s two largest airlines, IndiGo and Air India, are intensifying their competition for new aircraft, signaling ambitious expansion plans despite the massive deals both carriers announced in 2023. On Sunday, IndiGo confirmed it will exercise its option to purchase 30 additional Airbus A350-900s, effectively doubling its widebody order. This move comes alongside a new Memorandum of Understanding with Delta Air Lines, Air France-KLM, and Virgin Atlantic, aimed at integrating IndiGo’s network globally and creating synergies in maintenance, training, and systems.
Meanwhile, Air India, now under Tata Group ownership, is preparing its own major fleet expansion. According to sources cited by Reuters, the airline is nearing a deal with Boeing for the 777X widebody aircraft and is also in talks with both Airbus and Boeing to secure around 200 narrowbody jets. This follows Air India’s record-setting order in 2023 for 470 aircraft from the two manufacturers, plus an additional 100 Airbus jets added to its backlog last year.
The surge in orders reflects the airlines’ efforts to capture a larger share of India’s rapidly growing aviation market. However, both IndiGo and Air India face significant challenges. Delivery delays are looming, as Airbus and Boeing struggle with global supply chain disruptions and mounting backlogs. Airbus, while prioritizing these substantial Indian orders, is contending with limited assembly line slots for popular models like the A320neo and 737 MAX, with availability stretching into the next decade.
These constraints could impact the airlines’ ability to modernize their fleets on schedule, potentially affecting profitability and market share in a highly competitive environment. Rival carriers may respond with price adjustments or operational changes to maintain their positions, further intensifying competition.
As Indian airlines race to secure future capacity, their aggressive ordering strategies are not only reshaping the domestic market but also influencing global aviation dynamics. The outcome will depend on how quickly manufacturers can deliver and how effectively airlines can adapt to evolving market pressures.

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