Air India Considers Leasing Midsize Airbus A330 Aircraft Amid Delayed Boeing Deliveries

Strategic Insights -

Air India is mulling over leasing out six of its large Boeing 777 aircraft and hiring at least 10 midsize Airbus A330 planes, citing rising maintenance costs and a delay in delivery of Boeing 787s. The decision is pending a government committee's review, which is expected to submit its report within a month. This move stems from the airline's struggles to retain its current market in the large carrier space due to the delayed deliveries.

Key Takeaways:

  • Air India is considering leasing out six Boeing 777 aircraft and hiring at least 10 Airbus A330 planes.
  • The decision is pending a government committee's review, which is expected to submit its report within a month.
  • The delay in delivery of Boeing 787s is the primary reason for this move, with the airline scheduled to receive its first 787 in 2011, two years behind schedule.
  • The maintenance cost of old Airbus A330s is high, prompting the airline to look for short-term lease options that can lower the maintenance cost and retain the market.
  • Air India has asked Boeing Co for compensation for the delays but has declined to disclose details.
  • The airline is preparing a Plan B as it has already lost almost two years due to the delayed deliveries.
  • The Boeing 777 can seat up to 365 people, while the A330 can seat up to 290 people and the Dreamliner (Boeing 787) has a capacity of 250 passengers.

Statistics:

  • 6 Boeing 777 aircraft are being considered for lease out.
  • 10 Airbus A330 planes are being hired as an alternative.
  • 27 Boeing 787s (Dreamliners) were scheduled to be delivered to Air India, starting from September 2008, but the delivery has been pushed back to the second quarter of 2011 calendar year.
  • 365 people can be seated on a Boeing 777 aircraft.
  • 290 people can be seated on an Airbus A330 plane.
  • 250 passengers can be accommodated on a Boeing 787 (Dreamliner).

Sources:

  • Jadhav, A. (2010). Air India considers leasing midsize Airbus A330 planes. Mint.
  • A civil aviation ministry official (2010). Air India considers leasing midsize Airbus A330 planes. On condition of anonymity.
  • Anonymous Air India executive (2010). Air India considers leasing midsize Airbus A330 planes. On condition of anonymity.
  • Domain-b.com (2010). Air India considers leasing midsize Airbus A330 planes. Contify.com.
  • Boeing Co. (2010). Aircraft specifications: Boeing 777.