Air India has opted to hold off on exercising its options to purchase additional Boeing 737 MAX and 787 Dreamliner aircraft, citing concerns over delivery timelines and existing backlogs. This decision reflects a cautious approach to fleet expansion as Boeing navigates production challenges.
In 2023, Air India placed substantial orders totaling 470 new jets from Airbus and Boeing, including options for an additional 70 Boeing planes. However, delays in aircraft deliveries and the refurbishment of existing planes due to supplier issues have prompted the airline to reassess its immediate expansion plans.
The airline’s leadership emphasised the importance of delivery certainty, stating that both Air India and Boeing seek mutual confidence in fulfilment capabilities before proceeding with additional commitments. They noted that the airline’s extensive order book faces slower fulfilment than originally planned but remains optimistic about the company’s long-term transformation strategy.
The aviation industry is currently grappling with widespread supply chain disruptions, impacting retrofit programmes and causing delays ranging from six to eighteen months in receiving premium seats and in-flight equipment upgrades. These setbacks have extended the timeline for Air India’s comprehensive product transformation initiative.
Despite these challenges, Air India continues to monitor developments closely, maintaining regular communication with Boeing regarding delivery timelines. The airline remains committed to its fleet modernisation strategy and is exploring alternative solutions to mitigate the impact of these delays on its operations.
