Airbus targets 720 deliveries in 2023

Airbus, one of the leading aircraft manufacturers in the world, has set an ambitious target of delivering 720 planes in 2023. This target, which is higher than the number of planes it delivered in 2019, is a reflection of the company's confidence in the aviation industry's recovery.

However, Airbus also acknowledges that the industry's recovery might be slower and more feasible, given the supply chain snags caused by the COVID-19 pandemic.

Airbus on Thursday slowed the production ramp-up of key narrowbody models after supply disruption, but surprised investors and some suppliers by raising output ambitions for the widebody A350 as long-haul routes join a global travel recovery.

Airbus eyes slower, more feasible recovery after supply snags.

Airbus is coming off a challenging year in which the COVID-19 pandemic caused a sharp decline in air travel, leading to a drop in demand for new aircraft. The company delivered 566 planes in 2020, down from 863 planes in 2019.

Also read - Multiple Aircraft Types, Benefits Air India

To meet its target of 720 deliveries in 2023, Airbus is ramping up production across its aircraft lines. In addition, Airbus is also investing in new technologies and streamlining its manufacturing processes to increase efficiency and reduce costs.

Despite its optimism, Airbus acknowledges that the aviation industry's recovery might be slower and more feasible than originally anticipated. One of the key challenges facing the industry is the supply chain snags caused by the pandemic. Many suppliers have struggled to keep up with demand, leading to delays in the delivery of aircraft components.

Air India said on Tuesday it would start taking most of its 470 new Airbus and Boeing jets from mid-2025. 

To address these challenges, Airbus is working closely with its suppliers to ensure a steady flow of parts and components. The company is also investing in digital technologies, such as 3D printing and automation, to increase the efficiency of its supply chain and reduce the risk of disruptions.

In conclusion, Airbus's target of delivering 720 planes in 2023 is a reflection of the company's confidence in the aviation industry's recovery. However, the company is also aware of the challenges that lie ahead, particularly with regard to supply chain snags caused by the COVID-19 pandemic. By investing in production, supply chain management, and sustainable technologies, Airbus is positioning itself for long-term success in a rapidly changing industry.

Also read - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

India's aviation sector is poised for a giant leap after the recent mammoth order from Air India for 470 planes. Indian carriers, including IndiGo, are likely to place big orders for more than 1,100 planes.

Air India, now owned by the Tata Group, placed the order for both wide-body and narrow-body aircraft indicating its expansion plans for domestic and overseas markets. This is the largest so far by an Indian carrier and also one of the largest single aircraft orders in the world.

India's largest carrier, IndiGo, is expected to lead with an order of around 500 planes. The newly launched Akasa Air has ordered 72 Boeing narrow-body aircraft. Out of these, 16 planes have been delivered. Go First, earlier known as Go Air, has 72 planes on order while Vistara is to receive 17 more Boeing planes.

Indian airlines expected to order over 1,100 planes

ALSO READ - Akasa Air to place a large order for new narrowbody jets by year-end

“IndiGo has been planning to place a significant order of around 300 aircraft before COVID, which was deferred due to the pandemic. This is now likely to proceed and could be even larger than previously envisaged, increasing to around 500 aircraft now," Times of India quoted a recently released CAPA report as saying.

Currently, there are around 700 commercial aircraft in the country, with a majority of them being narrow-body or single-aisle planes.

ALSO READ - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

India is one of the fastest-growing aviation markets in the world. On Tuesday, February 14, the aircraft maker Boeing projected the country will require around 2,210 new planes in the next two decades and pegged annual domestic air traffic growth to be nearly 7% through 2041.

On February 14, Prime Minister Narendra Modi said the country's growing aviation sector would need over 2,000 aircraft in the next 15 years. Aviation consultancy CAPA on February 8, said Indian carriers are likely to place orders for 1,500 to 1,700 planes in the next one to two years.

In its report, CAPA said the total commercial Indian fleet of around 700 aircraft is smaller than some of the world's largest individual airlines and that given the immense potential that exists, it stands to reason that there is a need to induct more aircraft.

Air India, which is charting the revival path under the Tata Group, will acquire 250 planes from Airbus, including 40 wide-body A350 aircraft, and 220 planes from Boeing.

On February 3, IndiGo said that in the 2022 December quarter, the airline added 22 passenger aircraft (net of deliveries) to reach the 300 aircraft mark. "It is indeed a great milestone in our journey, and we will continue to take further deliveries from our large order book of 500 aircraft".

The latest Air India order is the first one by the airline in more than 17 years and the second one by an Indian airline post the pandemic. In 2005, Air India, under government ownership, had ordered 111 planes -- 68 from Boeing and 43 from Airbus.

IndiGo was the first airline to have placed the largest aircraft order in Indian history -- 100 Airbus narrow-body aircraft -- in 2005. This was followed by 180 Airbus planes ordered in 2011, 250 Airbus planes ordered in 2015 and 300 Airbus planes ordered in 2019.

Rival SpiceJet too had announced acquiring 205 planes in 2017 with 155 of them Boeing Max planes. Wadia Group-owned domestic carrier Go First placed an order for 144 Airbus 320 of 72 planes each in -- 2011 and 2016.

In its report, CAPA said the total commercial Indian fleet of around 700 aircraft is smaller than some of the world's largest individual airlines and that given the immense potential that exists, it stands to reason that there is a need to induct more aircraft.

“There will be a need to align policy, regulation, availability of skills, knowledge development, infrastructure, which includes airports as well as airspace, competition and consumer interests, with global best practices,” it said.

Manpower shortage--pilots, engineers, technicians, and air traffic controllers apart from technocrats for various civil aviation regulatory bodies and security agencies, that is—would be another challenge. Airlines have begun bracing for the climb.

“Air India, for instance, has commenced a project to create a training academy,” said an aviation source, adding that the airline is talking to various potential partners. Air India’s 470-aircraft delivery schedule will commence this year and end in 2032.

Vistara will hike the salaries of its pilots and cabin crew by up to 8% from April amid the deployment of higher capacities to meet rising travel demand, according to a source. The source also claimed that some 30 pilots have quit the airline in the last six months and are serving notice periods after getting job offers mainly from the Gulf carriers.

On Thursday, February 16, a senior Vistara official confirmed the salary hike for the pilots and cabin crew but denied that 30 pilots have left the airline.

The official also said the salary hike decision is part of the annual appraisal exercise and not triggered by any other development, adding that some pilots changed their decision to quit given the long-term opportunities at the airline, which is to be merged with Air India.

Vistara to raise pilots' and cabin crew salaries by up to 8% from April

The official did not provide any specific details about the number of pilots who quit or are serving the mandatory six-month notice period.

Queries sent to Vistara remained unanswered. "Vistara has increased pilots and cabin crew salary by 8% and 6%, respectively, from April," the source said.

With air travel demand picking up significantly, the demand for pilots is also on the rise. Globally, airlines are hiring people as they are expanding their fleets and operations.

"As communicated earlier, management continues to review pilot salaries regularly an increment of 8% in CTC will be allocated across all levels of pilots (except TFO) effective April 1. This increase will be added to the Base Flying Allowance (BFA)," Vistara said in an internal e-mail to its pilots.

This increase is not instead of the Supplementary Allowance (SA), which will be added over and above this adjustment for eligible pilots, as per the e-mail.

Vistara, a joint venture between Tata Group and Singapore Airlines, has around 5000 plus employees, including 2,500 cabin crew and pilots. Vistara announced a profitable October-December quarter in 2022, its first since it began operations in 2015.

ALSO READ - IndiGo restores annual increments for around 4500 pilots after the Q3 FY23 profit

This comes just days after reports of IndiGo restoring the annual increments of around 4,500 pilots. It will also implement the salary changes from April 1st.

The Hindustan Aeronautics Ltd (HAL) said on Thursday, February 18 it has received the Indian Technical Standard Order (ITSO) authorisation from the Directorate General of Civil Aviation for its indigenously developed Cockpit Voice Recorder (CVR) and Flight Data Recorder (FDR).

The ITSO is a minimum performance standard for specified materials, parts, processes, and appliances used on civil aircraft, the Bengaluru-headquartered HAL noted in a statement.

https://twitter.com/HALHQBLR/status/1626093988855042049

CVR and FDR are popularly known as 'black boxes'. However, these recorders are painted orange colour to help in their recovery following an aircraft accident.

CVR and FDR are used to record critical flight parameters and audio environment in a crash-proof memory which is later used for investigation of aircraft incidents or accidents, it was noted.

Black boxes that are resistant to the most extreme situations are one of the most special tools of the aviation research industry with their voice recording features. 

A black box is a flight data recorder that must be in every air vehicle. All flight information is recorded in the black box with a specific algorithm. This makes the recorded flight data accessible to authorities when needed. Black boxes that are resistant to the most extreme situations are one of the most special tools of the aviation research industry with their voice recording features. 

Although the black box is not a new device, it still operates with the same principle today. The last 2 hours of conversations in the cockpit, together with the data from the last 25 hours of the aircraft, are recorded by this device.

India's Akasa Air will place a "substantially" large order for new narrowbody jets this year, as the start-up budget airline looks to capitalise on booming demand at home and begin international flights, its chief executive told Reuters. The 200-day-old airline currently flies 17 Boeing 737 MAX planes out of a total order of 72 jets to be delivered by March 2027.

"Before the end of this year we are going to place another aircraft order that is going to be substantially larger than the 72 aircraft order we have placed," Vinay Dube said during an interview without giving a specific number.

The new order will be for narrowbody planes, said Akasa's co-founder, a former chief executive of now-grounded, bankrupt full-service carrier Jet Airways. Dube did not say whether the order would go to Boeing or Airbus, but budget carriers typically prefer to use a single narrowbody type to help control costs.

Akasa Air to place a large order for new narrowbody jets by year end

The order plans come as travel demand in India has seen a sharp rebound post-COVID-19, making it the world's fastest-growing aviation market, with capacity surpassing 2019 levels and passenger numbers inching close.

ALSO READ - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

Air India on Tuesday, February 14 placed an order for 470 jets, the largest by a single airline, as it looks to revamp its ageing fleet to capitalise on the travel boom at home while also competing with Gulf rivals like Emirates for international passenger traffic.

Indian airlines are forecast to order 1,500 to 1,700 planes over the next couple of years, according to consultancy CAPA India, including a likely 500 plane order from Akasa rival IndiGo, the country's biggest airline.

In its report, CAPA said the total commercial Indian fleet of around 700 aircraft is smaller than some of the world's largest individual airlines and that given the immense potential that exists, it stands to reason that there is a need to induct more aircraft.

Akasa will add three planes to its fleet within the next three months to reach 20, making it eligible to fly to international destinations as per Indian government rules, Dube said. "By the end of the year, we hope to be flying internationally," he added, with the carrier targeting destinations within the range of a 737 MAX in South Asia, Southeast Asia and the Middle East.

Dube said in the domestic market, Akasa would focus on its strategy of connecting smaller cities with the country's major metros at a time when demand remains strong despite high ticket prices. "Everything is growing gangbusters," he said. "The demand in India as a whole is going to continue to grow and grow and grow."

ALSO READ - Akasa Air acquires 5 brand-new Boeing 737 MAX aircraft from Avolon

Most of Akasa’s current fleet has been acquired on lease. There are 55 more planes to come, with deliveries spread across the next four years. The airline has received an aircraft every two weeks and will have 18 by the end of this month, ahead of its target of 18 planes by March this year.

Akasa has a presence in cities all across India, with a network that includes 14 destinations, namely, Ahmedabad, Bengaluru, Kochi, Chennai, Mumbai, Delhi, Guwahati, Agartala, Pune, Visakhapatnam, Lucknow, Goa, Hyderabad, and Varanasi.

In December, Akasa Air’s market share was 2.3%, and its passenger load factor has been hovering in the 80s. The airline’s next big goal is to start international operations, for which it needs a fleet size of 20 aircraft, which will likely happen later this year.

(With Inputs from Reuters)

Air India, the flag carrier airline of India, had been facing a multitude of challenges over the years, from mounting debts to stiff competition from private airlines. However, with the recent announcement of its plans to expand its fleet with multiple types of aircraft, Air India is poised to regain its lost glory in the aviation industry.

Air India’s agreement to acquire 470 planes from Airbus and Boeing, the largest deal in aviation history, will help the airline modernize its fleet, expand its network, and boost in its ambition to become “a world-class proposition.

Air India, recently privatized and now owned by the Tata group, will induct 210 Airbus A320/321 Neo planes, 190 Boeing 737 MAX single-aisle aircraft, 40 Airbus A350s, 20 Boeing 787s, and 10 Boeing 777-9s into its fleet.

Having sub-fleet types will make network optimisation easy for the airline. For instance, the ultra-long-haul A350-1000 will also allow the airline to launch direct flights to the West coast from Bengaluru and Mumbai which the airline currently operates with the older ex-Delta 777-200 LR.

Air India’s agreement to acquire 470 planes from Airbus and Boeing, was the largest deal in aviation history.

The Air India team was led by Air India Chief Commercial Officer Nipun Aggarwal, head of aircraft acquisition Yogesh Agarwal and Tata Sons executive Pranay Todi- all investment banking professionals and part of past marquee Tata Sons acquisitions."

"The Air India team was ruthless with negotiations. They pushed aircraft and engine makers asking the right questions even though it was their first aircraft buying negotiation experience."

Said a person involved in the process.

The Airbus order is for 210 narrow-body planes, including 120 A320 Neos and 40 A321 Neos, as well as 40 wide-body A350-1000 and A350-900 aircraft.

The Boeing order includes 190 737 Max aircraft, 20 787-900s and 10 777s with an option to buy an additional 50 737 Max planes and 20 787s. The aircraft will be delivered over eight to 10 years.

The new aircraft will be used to replace the current fleet of 27 787-8s, and 13 777-300 ERs which have been used for the last nine and 13 years.

The 400 narrow-body A320, A321 and 737 Max on the other hand will be used to increase the group’s market share on the domestic routes where it intends to be a close second to current market leader IndiGo.

While 50 Boeing 737 Max will be delivered within 18 months, the A320Neo will start only in 2026. Altogether, Tata Group airlines have a fleet of 220 aircraft, compared with IndiGo which has an active fleet of 308 aircraft and will grow to almost 400 aircraft by then.“

To close the gap with IndiGo, it is necessary to have a substantial aircraft delivery pipeline. Airbus A320 Neos were not available before 2026 while Boeing was ready to supply immediately,” the person quoted above said.

Multiple Aircraft Types, Benefits Air India.

Here are some ways in which multiple types of aircraft will help Air India achieve its goals: Improved connectivity: By adding multiple types of aircraft to its fleet, Air India can expand its reach and connect more cities in India and around the world.

Cost savings: By using different types of aircraft for different routes, Air India can optimize its fleet utilization and reduce operational costs. For example, regional jets are more fuel-efficient and have lower operating costs than larger aircraft. Similarly, wide-body aircraft can carry more passengers and cargo, thereby reducing the cost per seat.

Also read - From A350s to B777Xs, Air India finalizes the Historic 470 Aircraft deal with Airbus & Boeing

Enhanced passenger experience: Air India can cater to the diverse needs of its passengers by using multiple types of aircraft. Air India can provide a personalized and comfortable flying experience to its passengers. Improved safety and reliability: By diversifying its fleet, Air India can minimize the risk of disruption due to maintenance issues or unforeseen circumstances.

Competitive advantage: Air India's decision to add multiple types of aircraft to its fleet will give it a competitive edge over other airlines in the region. By offering a wider range of aircraft, the airline can serve more destinations and attract a diverse range of customers.

Air India's decision to add multiple types of aircraft to its fleet will give it a competitive edge over other airlines in the region.

This will help Air India to stand out in a crowded market and improve its market share. In conclusion, Air India's decision to add multiple types of aircraft to its fleet is a strategic move that will help the airline to achieve its goals of expanding its reach, improving its passenger experience, and reducing costs.

By diversifying its fleet, Air India can also improve its safety and reliability, and gain a competitive advantage over other airlines in the region.

(With Inputs from The Economic Times)