Tata Group: Air India’s mega order of 500 aircraft may be in trouble, know where the problem is – air india’s mega jet deal held up by engine-cost debate
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CFM International, the company that supplies engines for the 737 Max to Boeing, is not ready to give any kind of discount. It is a joint venture between General Electric Company and Saffron SA. CFM International and the Pratt & Whitney division of rival Raytheon Technologies Corp are at odds with the new generation of planes from Boeing and Airbus. These planes have to be repaired very quickly. Because of this their margin is getting affected. Air India has been in talks for the last 10 months for the purchase of 500 aircraft. It is believed that it can be announced this month.
preparing to seize the opportunity
A CFM representative declined to comment. Boeing and Airbus also did not respond. Boeing 737s are powered by CFM engines, while Airbus’s A320s can be powered by either CFM or Pratt engines. Experts say that the Air India management has completed work on the deal with Airbus but it has not been finalized yet. There is a good recovery in the airline industry after the pandemic. Air India wants to take full advantage of this. This is the reason why the company is buying a large number of aircraft.
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Steven Udvar-Hazy, executive chairman of AirLease Corp, the world’s leading aircraft leasing company, recently said that he has orders for 500 aircraft coming from India. Of these, 400 are narrow body aircraft. These include Airbus A320neos, A321neos and Boeing 737 MAXs. There, there are 100 wide body aircrafts. These include Boeing 787s, 777Xs, some 777 freighters, and Airbus A350s.
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