AEROSPACE OUTLOOK

by Royce Lowe

Air India’s Big Push

As we noted in our January edition, Air India was on the verge of acquiring up to 500 new aircraft. It was recently announced that the company has placed orders with Airbus for 210 A320neos and 40 A350s, and with Boeing for 190 737Max, 20 787s and 10 of its largest 777X. This stands to be the largest purchase in commercial aviation history. Further to this, Air India has ordered a total of 880 engines from both CFM International and Rolls Royce to power the new fleet.

CFM International reported that this is the largest-ever order for its CFM LEAP engines, to power 210 Airbus A320/A321neo and 190 Boeing 737 MAX narrow-body aircraft. The order covers 420 LEAP-1A engines and 380 LEAP-1B engines, plus spares. The airline also contracted for CFM services related to the new LEAP engines. A LEAP engine, short for Leading Edge Aviation Propulsion, is a high-bypass turbofan engine. Details of how the engine works may be found on YouTube or Wikipedia. The engine contains ceramic matrix composites, together with some of the first FAA-approved 3D-printed components. The order is said to be worth $80 billion, but Air India has not confirmed this figure. CFM International is a 50-50 venture of GE Aviation and Safran Aircraft Engines, and the developer of the LEAP engine family high-bypass turbofan engines. Each partner manufactures the LEAP engines in its own production operations.

Separately, Rolls-Royce announced its own order from Air India for 68 Trent XWB-97 engines, plus options for 20 more engines. Rolls Royce also noted this represents the largestever order for the Trent XWB-97, the exclusive power plant for the Airbus A350-1000 widebody aircraft. Air India also ordered 12 Trent XWB-84 engines, the sole engine option for the Airbus A350-900.

Air India has “significant options” to increase its Airbus order, as the airline grows. Boeing said Air India may eventually add 50 more 737Max and 20 787s. Air India will begin receipt of the A350s before the end of 2023. The initial batch of six planes were being built for Russia’s Aeroflot PJSC, which is no longer able to take aircraft due to sanctions. It is also ordering 34 of the larger A350-1000 model that Airbus says will give it the ability to offer non-stop services “deep into all the continents of the world.”

Both Boeing and Airbus project that India will need on the order of 2,210 new planes over the next two decades. China, on the other hand, is projected to need 8,485 new aircraft through 2041. Boeing’s order from India contrasts with its recent performance in China. There the company has effectively missed out on new orders because of the grounding following two deadly accidents. China used to take a quarter of Boeing’s 737 output, and it’s been more than 3 1/2 years since a mainland Chinese airline took delivery of a new jet from the company’s bestselling line.

Air India is attempting to win back traffic from Emirates and Qatar

Airways, which have had a heyday carrying Indians to the U.S. and Europe via their huge hubs in Dubai and Doha. Indian Prime Minister Modi is proud of the deal, and sees it as part of a push to expand India’s aviation industry. The country wants to be a hub for maintenance and repair operations for the region as well.

Even the UK had something to say about this. Commenting on the deal, Prime Minister Rishi Sunak said Air India’s order bolstered Airbus’s decision last year to invest over £100 million at its wing assembly plant in Wales, as well as to add 450 jobs. It will also boost employment at Rolls Royce.

Singapore Airlines Ltd.’s low-cost carrier, Scoot Pte Ltd., signed a letter of intent to add Embraer SA regional jets to its fleet, aiming to fly to smaller destinations in Asia’s emerging markets. Delivery of nine E190 E2 jets will start in 2024, according to the carrier. The aircraft will be sourced from the leasing company Azorra.

This agreement marks the first time Singapore’s main airline has ordered Embraer planes, and is a major boost for the Brazilian company. Embraer is seeking to secure the future for its flagship commercial aircraft. This order could grow to as many as 50 planes over time, as the carrier seeks to widen its reach in neighboring Indonesia, Malaysia, Vietnam, Thailand, and the Philippines.

Author profile:Royce Lowe, Manufacturing Talk Radio, UK and EU International Correspondent, Contributing Writer, Manufacturing Outlook. n

MARCH 2023