(Boursier.com) — Air India’s historic order is long overdue. But, according to the always well-informed people familiar with the matter quoted by ‘Bloomberg’, the Indian company has now agreed the main lines of the agreement with Airbus and Boeing and could formalize its order as early as next week.
Airbus is expected to win around 250 orders and commitments, consisting of 210 A320 Family models and 40 A350 widebody aircraft, the agency’s sources say. Boeing could have to ship up to 290 aircraft, including 190 B737 Max (with an option for 50 more), 20 B787 Dreamliners (with 20 more on option), and 10 B777x. The final tally could still change due to the complex structure of the agreement, which is made up of firm orders, memorandums of understanding and letters of intent, the agency said.
At list price, this contract, one of the largest in history, would be worth tens of billions of dollars. The carriers nevertheless obtain significant discounts during this type of agreement. With these new aircraft, Air India, which now belongs to the Indian conglomerate Tata Group, should be able to compete better on an ultra-competitive domestic market but also internationally where Indian carriers are notably confronted with Gulf companies, Emirates and Etihad in head.
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