Air India has decided to hold off on exercising its outstanding options to purchase additional Boeing jets until the planemaker clears its current backlog, according to CEO Campbell Wilson. In an interview with Reuters on Wednesday, Wilson explained that both Air India and Boeing are waiting for certainty regarding delivery timelines before making further commitments.
“We don’t want to commit to anything until we have confidence of when it’s going to come. And likewise, they (Boeing) don’t want to offer something until they have confidence of when it’s going to come,” Wilson said, highlighting the importance of clear delivery schedules for both parties.
This decision comes as Air India embarks on a major multi-billion-dollar revamp to compete with established industry players. Since Tata Group took over the airline more than two years ago, the carrier has been undergoing significant transformations to improve its fleet and services. However, delays in aircraft production and supply chains have affected the airline’s decision-making process regarding future jet acquisitions.
The airline is taking a cautious approach, focusing on ensuring it has reliable and timely deliveries before committing to additional aircraft orders. This move reflects both the competitive pressures in the aviation industry and the challenges faced by manufacturers like Boeing in meeting demand amid ongoing global supply chain issues.
