Air India orders 68 aircraft from Boeing
Government owned international airline company Air India has finally received the approval to sign on a landmark agreement with US aerospace firm Boeing. They have placed an order for 68 aircraft at an estimated cost of Rs 35,000 crore. The deal was formally signed between Air-India Chairman V Thulasidas and President and CEO of Boeing Commercial Airplane Alan Mulally at the Air-India office in south Mumbai.
This order would bring a host of new planes to the depleted and aging fleet of Air India helping it compete more efficiently in the market. India has become a major destination for global airline companies as the market has seen a phenomenal boom in the last couple of years. The domestic sector has practically become crowded with the entry of many budget airline companies like Air Deccan and GoAir.
In addition, many international companies like American Airlines and Virgin Atlantic have shown considerable interests in expanding their operations in the Indian market. It has become crucial for Air India to overhaul its fleet and offer more flights to newer destinations to keep its customer base happy with their services.
The order placed with Boeing consists of 23 Boeing 777s and 27 Boeing 787-800 dream liners. And some of these planes would be used by Air-India Express, a wholly owned subsidiary of Air India.