Air India jumbo aircraft order to include B737 MAX and B787 Dreamliner

Radhika Bansal

18 Dec 2022

Boeing is closing in on an order for as many as 200 of its B737 Max jets and 30 widebody B787s from Air India as the two sides race to wrap up talks before the year-end holidays, according to people familiar with the matter.

ALSO READ - Air India to finalise the deal of 50 B737 MAX for Air India Express

The final deal is expected to include 40 to 50 Max aircraft that were built for Chinese carriers but never delivered due to an extended grounding of the US jet and heightened trade tensions, some of the people said, asking not to be identified because the discussions are confidential.

ALSO READ - Boeing offers 737 MAX aircraft to Air India

A Boeing spokeswoman declined to comment. Air India and Tata representatives didn’t immediately respond to requests for comment outside of normal business hours.

Air India jumbo aircraft order to include B737 MAX and B787 Dreamliner

Broader negotiations over Air India’s fleet makeover have heated up in recent weeks as the management team eyes sweeping changes, including refreshing the carrier’s long-haul fleet with Airbus A350s and Boeing’s 787 Dreamliner jets and leasing used Boeing 777s to serve on international routes. The talks are complex, involving multiple parties including financiers and engine makers, and could drag into next year, the people cautioned.

With its large and increasingly mobile population, India has become a critical market for planemakers like Boeing and Airbus, even more so given China’s difficulties emerging from Covid. The country’s dominant carrier is IndiGo, the world’s biggest customer for Airbus’s best-selling A320neo family of jets, making it crucial for Boeing to build a better presence in the nation.

It was previously reported that Tata, which bought Air India back from the government for INR 180 billion in 2021, was considering orders for as many as 300 narrow-body and 50 wide-body, or twin-aisle, planes. Boeing is now offering several 737 Max jets once slated for Chinese customers to Air India as the planemaker tries to offload some of the roughly 140 aircraft it’s currently not allowed to deliver, Bloomberg reported in October.

Broader negotiations over Air India’s fleet makeover have heated up in recent weeks as the management team eyes sweeping changes

ALSO READ - Air India to refurbish its wide-body aircraft interiors by investing USD 400 million

Air India, established by Tata’s founder nearly a century ago before being nationalized in the 1950s, hasn’t made a profit in 15 years. It’s now in the early stages of a transformation plan intended to lift its India market share to 30% from about 9%. The carrier said last week it will invest more than USD 400 million to refurbish its wide-body jets as it tries to spruce up its image.

ALSO READ - Tata Group considering integrating all its airlines under the Air India brand

Tata is also consolidating its four airline units, bringing its Vistara, Air India Express and AirAsia India ventures under the national carrier’s brand. The order being considered includes taking some aircraft on lease with options to buy later, the people said.

ALSO READ - Air India to integrate AirAsia India with Air India Express by the end of 2023

Air India will also invest more than USD 400 million to refurbish its wide-body jets as it tries to spruce up its image.

Reuters reported earlier that Air India may order up to 500 jetliners from Airbus and Boeing, citing people in the industry it didn’t identify.

ALSO READ - Air India close to placing landmark orders for 500 jetliners

Reuters also reported that Air India is close to a deal to order more than 200 Boeing jets including 190 narrowbody 737 MAX and 30 widebody 787s - part of a historic fleet shake-up roughly split with Boeing's European rival Airbus. The deal is also expected to include an unspecified number of Boeing 777X long-range jets.

ALSO READ - Air India likely to order up to 150 Boeing B737 Max jets

Airbus is separately moving towards a deal with Air India including at least 200 of its A320-family narrowbody jets as well as dozens of larger A350s, industry sources said.

(With Inputs from Bloomberg and Reuters)

Read next

IndiGo applies for final approval for wet leasing B777 from DGCA

Radhika Bansal

16 Dec 2022

After receiving in-principle approval for inducting B777 aircraft on a wet lease basis from the Ministry of Civil Aviation (MOCA), IndiGo has now applied for final approval from the aviation regulator DGCA for these operations as per the prescribed procedure.

In coordination with the process of these approvals, IndiGo will soon make this 777-capacity available for sale on the Delhi - Istanbul - Delhi route, subject to regulatory approvals.

"We are working closely with the authorities to ensure all the required steps to obtain the approvals are completed well in time and will consider the earliest go-live date for these aircraft in line with the expected receipt of requisite approvals. This wet lease solution will also enable us to better utilize our A321 narrow-body fleet to continue our network deployment in light of the global supply chain issues."

Spokesperson, IndiGo

ALSO READ - IndiGo to debut with widebody aircraft for international expansion

IndiGo is planning to wet lease aircraft to meet the growing demand for air travel. Under a 'wet lease' arrangement, the lessor maintains operational control of flights while providing aircraft and crew. Generally, wet leasing of planes is allowed for short periods to tackle supply constraints and ensure that airfares do not surge significantly.

ALSO READ - Is wet leasing aircraft a good choice for Indian airlines?

IndiGo applies for final approval for wet leasing B777 from DGCA

Keeping in view the demand and growth in aviation traffic, Indigo is looking to expand its fleet and International operations.

ALSO READ - DGCA turns down IndiGo request to wet lease Turkish planes

Earlier in October, the Directorate General of Civil Aviation had rejected IndiGo’s request to wet lease the aircraft from Turkish Airlines for a year (extendable by one year) because the rules allow for only three months, extendable by a further three months. Wet leasing in India is only allowed to overcome sudden capacity constraints.

The regulator saw IndiGo’s request as a diversion of traffic rights in collusion with a strong foreign carrier that would only feed the latter’s hub. After DGCA’s rejection, IndiGo approached the Ministry of Civil Aviation for special permission, which it has now acquired to induct the wide-body aircraft.

ALSO READ - DGCA allows IndiGo to wet lease Turkish Airlines planes

Keeping in view the demand and growth in aviation traffic, Indigo is looking to expand its fleet and International operations.

ALSO READ - Relief for IndiGo as Indian carriers can now wet lease wide-body aircraft for a year

On November 27, IndiGo said it has approached the ministry and received a communication conveying the ministry's approval to allow Indian carriers to wet/damp lease aircraft for six months extendable by another six months.

Such relaxation shall be available to all Indian carriers on their specific request, and the ministry will consider the same based on international destinations that the airline intends to operate, it had said.

Earlier, on the occasion of declaring recent financial results of the airline, Indigo CEO Pieter Elbers said, "We are on a steady path to recovery, benefiting from enormous opportunities both in domestic and international markets. With an industry challenged by global supply chain disruptions, we are working on various countermeasures to accommodate this strong demand. We have an unparalleled network presence enabling air travel to 74 domestic and 26 International destinations, we will continue to accelerate and build on this."

The ministry has also asked all the airlines to operate wide-body aircraft so that they can ferry more passengers from India to foreign countries.

As of September 30, a fleet of 279 aircraft, including 26 A320 CEOs, 149 A320 NEOs, 68 A321 NEOs, 35 ATRs and 1 A321 freighter; there was a net decrease of three passenger aircraft during the quarter. IndiGo operated at a peak of 1,630 daily flights with 76 domestic and 26 international destinations during the quarter, including non-scheduled flights.

The ministry has also asked all the airlines to operate wide-body aircraft so that they can ferry more passengers from India to foreign countries.

On Thursday, December 15 civil aviation minister Jyotiraditya Scindia said India's civil aviation market is poised for double-digit growth in the next decade and the country's carriers should have more wide-body planes to capture the long-haul segment.

Read next

Air India pilot unions claim shortage of flying crew; slam work schedule

Radhika Bansal

16 Dec 2022

Two pilot unions at Air India have claimed that there is a shortage of pilots to operate the airline's long-haul and ultra-long-haul flights. The concerns raised by the Indian Pilots Guild (IPG) and Indian Commercial Pilots Association (ICPA) also come against the backdrop of the Tatas-owned airline recently cancelling and rescheduling certain flights to and from THE North American region due to crew shortage.

The unions represent pilots from both the narrow-body Airbus and wide-body Boeing fleets. The unions’ main grouse relates to increased flying duties, leave denials, and refusal to revert to pre-Covid overtime pay among others.

In a joint letter written to Air India's Chief Human Resources Officer Suresh Dutt Tripathi on December 13, the unions said, "…we cannot maintain the printed planned roster due to a shortage of pilots, as CMS (crew management system) does not have standby pilots."

Air India pilot unions claim shortage of flying crew; slam work schedule

There was no immediate comment from Air India on the letter. While IPG represents pilots of wide-body planes, ICPA represents those operating narrow-body aircraft. According to the unions, the number of leave denials and cancellations for pilots is also staggering.

Further, it has questioned the airline's decision to hire ex-pat pilots for the Boeing 777 fleet at a CTC (cost to company) that is "at least 80% higher with significantly higher leave benefits than what is being provided to its long-serving pilots."

"Since early 2022, the management has steadily but strongly enhanced the flying schedule. The under-crewed pilot workforce enthusiastically supported these expansion plans by accommodating constant roster changes and repeated pullouts, even on off days," the letter said.

Tata group took over loss-making Air India in January this year and has been working on expanding services as well as the fleet.

Tata group took over loss-making Air India in January this year and has been working on expanding services as well as the fleet. "Though management might refute the charges of crew shortage in public, the reality is there for everyone to see. On all fleets, and especially on the 777 fleets, pilots have flown well over 90 hours per month consecutively," it said.

They alleged that "more often than not, the schedule is managed, keeping the paperwork in order while the regulatory FDTL (Flight Duty Time Limitation) may have been undermined… we will be forced to take steps by involving regulatory authorities to end this."

Besides, the pilots' unions have flagged that the airline is yet to restore certain components of the pay structure that were there before the coronavirus pandemic.

Pilots working with Air India have also warned of non-co-operation if restoration of pre-Covid overtime allowance is delayed

"We have aided in bringing Air India to the number one position in the on-time performance rankings, yet there is no appreciation by the management. At the very least, a company with such major expansion plans should have restored the pre-Covid overtime rates," it stated.

Pilots working with Air India have also warned of non-co-operation if restoration of pre-Covid overtime allowance is delayed, and if other practices they say are ‘discriminatory’ continues.

“We cannot assure that our members will undertake flying duties exceeding 70 hours a month. Any coercive action by the management will lead to industrial action to safeguard flight safety and the well-being of our members,” the Indian Commercial Pilots Association and the Indian Pilots Guild said in a joint letter to Air India’s management.

Earlier this month, Air India graduated its first batch of cabin crew trainees and new pilots since privatization.

ALSO READ - Air India graduates the first batch of cabin crew trainees & pilots; ready to take off on A320 fleet

Earlier this month, Air India graduated its first batch of cabin crew trainees and new pilots since privatization. The batch of 215 cabin crew and 48 pilots, all Indian nationals, have received their wings and are now ready to be deployed to operate as fully-qualified crew. Most of these crew members will join the airline's A320 fleet.

ALSO READ - Air India hits with Pilot & Cabin Crew shortage as it plans to expand internationally

Cabin Crew Shortage Hits Ultra Long Haul Flights of Air India

Earlier it was reported that Cabin crew constraints are impacting Air India's ultra-long-haul flights, with the Tatas-owned carrier deciding to either reschedule or cancel certain services to San Francisco and Vancouver, according to airline sources.

Recently, Air India had to delay at least six flights to US and Canada due to the unavailability of cabin crew. It was believed that flights were getting stuck due to engineering issues. The airline is doing everything in its hands to resolve this crunch of cabin crew. It has even tried to bring back the crew who had applied for voluntary retirement scheme (VRS) earlier in November.

Air India had to delay at least six flights to US and Canada due to the unavailability of cabin crew.

The sources said the airline is either delaying departures or cancelling some of its ultra-long-haul flights amid cabin crew shortages and the situation is resulting in inconvenience to passengers in this peak winter travel season. Generally, ultra-long-haul flights are those having duration of more than 16 hours.

Amid a long waiting period for US visas, the airline has been facing a shortage of cabin crew and senior pilots for ultra-long-haul flights. In the wake of the cabin crew crunch, Air India had recently given an option to its cabin crew who had opted for its voluntary retirement scheme to extend their release date from the services by up to January 31, 2023.

Crew duty periods are counted from the time of reporting at the airport (two hours before a flight) and ends 30 minutes after landing at their final destination.

Read next

Finnair brings Santa Claus to India for the first time 

Radhika Bansal

16 Dec 2022

With Christmas only a few weeks away, Santa Claus has begun his world tour. With travel restrictions being lifted around the world, the jolly fellow Santa Claus is switching from Rudolph’s sleigh to his official airline, Finnair, Finland’s national flag carrier, to visit India for the first time. After a stopover in Singapore and Tokyo, Santa made his way to India to spread the Nordic Christmas cheer.

Santa Claus exchanged high-fives with children and passengers upon arriving at Chhatrapati Shivaji Maharaj International Airport on December 15. He will be in Mumbai from December 15th-18th where he will be visiting events such as IIT-Bombay and spreading good cheer in hospitals, such as King Edward Memorial Hospital.

Santa will also be coming to Phoenix Palladium on December 18 between 3-7 PM IST and will be meeting children and their parents in the mall. All the engagements in Mumbai have been jointly organized by Finnair and Visit Finland.

Finnair brings Santa Claus to India for the first time 

Before coming to India, Santa was in Tokyo and Singapore early this month. Looks like Santa has been busy travelling to bring joy and festivities to improve the well-being of the children of the world while maintaining the global image of Finland as the true Christmas country and homeland of Santa Claus.

ALSO READ - Finnair to launch a direct flight between Mumbai and Helsinki

As Finland’s national flag carrier, Finnair regularly flies to Rovaniemi, the official hometown of Santa Claus. The carrier added Mumbai as its second destination in Summer 2022 and operates from Mumbai and Helsinki three times a week, i.e., on Wednesday, Friday, and Sunday, connecting Indian travellers smoothly to and from Finnair’s vast network including Rovaniemi.

This is a popular travel destination for those visiting the Santa Claus Village, which is open year-round for guests to visit Father Christmas and soak in the charming festive atmosphere. Visitors can admire the Finnish design within the village’s wooden buildings as they send Christmas cards to loved ones and explore atmospheric restaurants, cafes, and gift shops alongside other attractions.

The carrier added Mumbai as its second destination in the Summer of 2022 and operates from Mumbai and Helsinki three times a week

Since 1983, Finnair has been the Official Airline of Santa Claus. At the heart of this relationship is the airline’s collaboration with the Santa Claus Foundation, which aims to boost children’s well-being across the globe. This traditionally referred to flying Santa on goodwill tours of Europe and Asia annually and hosting charitable projects to generate funds supporting education in Nepal.

Finnair is a network airline, specializing in connecting passenger and cargo traffic between Asia and Europe via the short northern route. Sustainability is at the heart of everything we do – Finnair intends to reduce its net emissions by 50% by the end of 2025?from the 2019 baseline?and achieve carbon neutrality latest by the end of 2045. Finnair is a member of the OneWorld alliance.

Read next

VietJet Air sold flight tickets from Bengaluru even though it has no service from the city

Radhika Bansal

15 Dec 2022

Vietnamese low-cost carrier VietJet Air reportedly sold flight tickets from Bengaluru to several travellers even though it has no service from the city, according to a report in the Times of India. As per the report, many travellers have booked their Vietjet flights via 'well-known ticketing portals' but are now struggling to get a refund for their tickets for the non-functional flight routes.

Reportedly, tickets from Bengaluru to Vietnam were on sale till November with attractive offers, until affected buyers complained on social networks about the non-existent flights.

VietJet Air sold flight tickets from Bengaluru even though it has no service from the city

"While some other Bengalureans who had booked VietJet flight tickets received emails about the flight cancellation, many, including Ramesh K and his partner from Basavanagudi, were shocked to find there is no VietJet flight from Bengaluru," according to the TOI report.

A couple from Bengaluru, Dilip Ranganath and Arpita, told TOI that they spent nearly INR 1 lakh on tickets and hotel bookings, but now they are struggling to get a refund.

"I received an SMS a few days ago mentioning that our flight journeys from Bengaluru to Hanoi, Hanoi to Danang, Danang to Ho Chi Minh and Ho Chi Minh to Bengaluru were all cancelled due to operational hurdles. Having spent nearly Rs 1 lakh on the holiday, including for air tickets and hotel bookings, we desperately tried to reach the VietJet Air helpline numerous times but there has been no response," Dilip told the Times of India.

VietJet Air announced in July this year that it will begin direct flights from Bengaluru to Vietnam in the first week of November

ALSO READ - Vietjet to connect the coastal city of Da Nang with 5 Indian cities

Notably, VietJet Air announced in July this year that it will begin direct flights from Bengaluru to Vietnam in the first week of November, but the airline has yet to begin service. According to the Times of India, the Vietnamese carrier has put off its plans to launch services from Bengaluru till December 2023.

According to the report, VietJet India has offered passengers the option to reschedule their Bengaluru flight from Mumbai or Delhi to Vietnam at an additional cost, "but refunds for tickets for the non-operational Bengaluru leg were declined." The airline representatives, however, gave the option of a credit note for future travel with the airline.

(With Inputs from The Times of India)

Read next

Union Home Secretary Ajay Bhalla reviews congestion at Delhi & Mumbai airports

Radhika Bansal

15 Dec 2022

Union Home Secretary Ajay Bhalla recently convened a meeting with key stakeholders, to look into the issue of crowding at airports, especially in Delhi and Mumbai. The meeting comes in the wake of a series of complaints from passengers regarding long lines and queues, as well as the rush at the entry gates, luggage dropping area as well as in security check areas.

Representatives of key stakeholders such as the Civil Aviation Ministry, airport operators, CISF, and Bureau of Immigration are expected to attend the meeting, an official said.

Over the last two weeks, passengers have been posting pictures and videos of long queues and crowds at the IGI in Delhi and the Chhatrapati Shivaji Maharaj International Airport in Mumbai prompting authorities to take note and ask airlines and airport operators to ease the traffic.

The Central Industrial Security Force (CISF) has formed a pool of more than 100 personnel to man additional security counters expected to be handed over to it to ease the congestion at large airports of Delhi and Mumbai, official sources said.

The central paramilitary, designated as the national aviation security force, has informed airport operators, airlines, and the Union civil aviation ministry that while it can bring on board some more security personnel, there can be "no compromise on security protocols and standard operating procedures followed by it for regular frisking of passengers and scanning of cabin baggage apart from fliers required to undergo extensive search due to specific profiling."

The civil aviation ministry had asked airlines to deploy adequate manpower at all check-in and baggage drop counters, besides requesting the scheduled airlines to update their social media feed with real-time numbers on the waiting time at airports' entry gates.

The continued commotion at the airports has forced airlines to ask passengers to reach airports early, do a web check-in, and carry only one piece of hand baggage for faster movement.

Comment