India’s brand new airline venture Akasa Air has placed a massive order for 72 aircraft with Boeing at Dubai Airshow.
Meanwhile, another Indian airline, SpiceJet, which is also participating at the annual aviation event, has announced that it has entered into a settlement with Boeing on its outstanding claims related to the grounding of 737 MAX aircraft and its return to service.
“This paves the way for the induction of efficient and younger MAX aircraft into SpiceJet’s fleet and ensures the resumption of new aircraft deliveries from our order of 155 MAX aircraft,” the Indian carrier said.
SpiceJet, however, did not disclose the details of its settlement agreement with Boeing, besides saying that the US aircraft maker has agreed to provide certain accommodations.
The billionaire Indian market investor Rakesh Jhunjhunwala-backed new Indian carrier Akasa’s order for 737 MAX airplanes is valued at nearly $9 billion at list prices, both Akasa and Boeing said.
Akasa Air’s order – the first one by the carrier – includes two variants from the 737 MAX family – the 737-8 and the high-capacity 737-8-200.
“We are delighted to partner with Boeing for our first airplane order and thank them for their trust and confidence in Akasa Air’s business plan and leadership team,” Vinay Dube, chief executive officer of Akasa Air, said.
“We believe that the new 737 MAX airplane will support our aim of running not just a cost-efficient, reliable and affordable airline, but also an environmentally-friendly company with the youngest and greenest fleet in the Indian skies,” Dube added.
The new Indian carrier’s order with Boeing is the first massive commercial deal witnessed at this year’s edition of Dubai Airshow, which started on Sunday and will run through to Thursday.
This year’s show in Dubai features over 20 country pavilions, along with a stunning aircraft display of over 160 commercial, military, and private jets, including the latest Boeing 777X and Bombardier’s Global 7500.
Dube said the 737 MAX aircraft, providing the lowest seat-mile costs for a single-aisle airplane, along with its high dispatch reliability and an enhanced passenger experience, would ensure Akasa Air will have a competitive edge in the dynamic Indian market.
Boeing welcomed Akasa Air’s move to place a massive order for its MAX fleet with great enthusiasm.
“We are honoured that Akasa Air, an innovative airline focused on customer experience and environmental sustainability, has placed its trust in the 737 family to drive affordable passenger service in one of the world’s fastest-growing aviation regions,” said Stan Deal, Boeing Commercial Airplanes president and chief executive officer.
India’s growing economy and expanding middle class will fuel strong demand for commercial flights, driving the need for more than 2,200 new airplanes in South Asia valued at nearly $320bn over the next 20 years, according to Boeing’s 2021 commercial market outlook forecast.
Aviation industry experts said the massive order by Akasa Air, and the settlement agreement with SpiceJet, would come as a major morale booster for the US plane manufacturer, whose reputation and profits took massive hits in recent years after safety-related troubles with its MAX jet fleet.
India’s air safety regulator Directorate General of Civil Aviation in August allowed the country’s airlines to fly the MAX jet, nearly two-and-a-half years after it was grounded globally. The global ban on MAX jets followed two crashes involving the aircraft, killing 346 on-board.
The Federal Aviation Administration in the US allowed the 737 MAX to fly again last November.
Follow us on
