Air India will Not Exercise its Boeing 787 and 737 MAX Options Order

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GURUGRAM- Tata Group-owned Air India (AI) Chief Executive Officer (CEO) Campbell Wilson has announced the airline’s decision to postpone its optional aircraft purchases from Boeing, citing concerns over the manufacturer’s existing delivery backlog.

The decision reflects a cautious approach to fleet expansion as Boeing grapples with production challenges, Reuters reported.

Photo: By byeangel from Tsingtao, China – VT-ANM | Air India | Boeing 787-8 Dreamliner | ICN, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=39849225

Air India Boeing Order

The Indian national carrier, which initiated a comprehensive transformation following its acquisition by Tata Group two years ago, maintains regular communication with Boeing regarding delivery timelines.

Wilson emphasized the importance of delivery certainty, stating that both Air India and Boeing seek mutual confidence in fulfillment capabilities before proceeding with additional commitments.

The airline’s fleet modernization strategy gained momentum in 2023 with substantial orders totaling 250 aircraft from Airbus and 220 from Boeing. These orders included options for 70 additional Boeing aircraft, comprising 50 737 MAX aircraft and 20 787 Dreamliners.

Air India further expanded its commitment to fleet renewal with an additional order of 85 Airbus aircraft in October.

Boeing’s current situation stems from heightened regulatory oversight following a recent safety incident involving an Alaska Airlines (AS) aircraft, where a door panel detached during flight.

This incident prompted the U.S. Federal Aviation Administration (FAA) to impose a production limit of 38 jets monthly, directly affecting Boeing’s delivery capabilities.

The scrutiny of Boeing’s manufacturing processes and safety protocols has intensified, impacting the company’s ability to meet delivery schedules. Air India maintains vigilant oversight of these developments, with Wilson confirming weekly communication with the manufacturer to monitor progress.

Photo: avgeekwithlens/ Harsh Tekriwal

Transformation Faces Supply Chain Delays

Air India’s fleet modernization timeline undergoes significant adjustments as CEO Campbell Wilson acknowledges inevitable delays in aircraft deliveries.

The airline’s extensive order book faces slower fulfillment than originally planned, though Wilson maintains optimism about the company’s long-term transformation strategy.

The aviation industry’s widespread supply chain disruptions impact Air India’s retrofit programs, causing delays ranging from six to eighteen months in receiving premium seats and in-flight equipment upgrades. These setbacks extend the timeline for Air India’s comprehensive product transformation initiative.

Wilson addresses the potential diversification of aircraft suppliers, discussing the possibility of future partnerships with China’s COMAC. The airline maintains an open stance toward alternative manufacturers, provided they demonstrate capabilities in producing safe, reliable aircraft with comprehensive long-term service support.

Photo: Utkarsh Thakkar (Vimanspotter)

Widebody Retrofit

Air India launches a temporary enhancement program for its Boeing 777 fleet as global supply chain challenges delay comprehensive retrofit plans. The airline partners with SIA Engineering Company to upgrade thirteen Boeing 777 aircraft operating on North American routes.

The interim refresh program introduces essential cabin improvements, including new seat covers, cushions, curtains, and carpets aligned with Air India’s modernized brand identity. These modifications serve as a bridge solution until conditions permit full aircraft renovations.

The airline sets December 2025 as the completion deadline for refreshing all thirteen Boeing 777s serving ultra-long-haul routes to the United States and Canada. This timeline integrates with Air India’s broader fleet transformation initiative, which encompasses 67 legacy aircraft renovations.

The airline’s comprehensive modernization plan divides into two segments: narrow-body aircraft upgrades targeting completion by July 2025, and wide-body aircraft renovations extending to late 2025.

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