Boeing Co. has secured an order for 150 Max jets from India’s latest airline (Akasa Air), offering a rare positive development for the U.S. aircraft manufacturer following an incident where a section of fuselage detached from an Alaska Airlines flight nearly two weeks ago.
Akasa Air, in operation for less than two years, solidified its commitment by placing a definitive order for 737 Max 10 and Max 8-200 planes scheduled for delivery in 2032.
This announcement was made during the Wings India air show on Thursday. Notably, the order excludes the Max 9 variant linked to the January 5 incident involving Alaska Airlines, where a door plug panel detached shortly after takeoff.
Akasa Air, operational for less than two years, has recently secured a substantial order for 150 Boeing 737 MAX aircraft, consisting of Max 10 and Max 8-200 models.
This move, announced at the Wings India air show, signifies a notable development for the US aircraft manufacturer, Boeing, following a recent incident involving an Alaska Airlines flight.
Akasa Air’s total order book now stands at 226 aircraft, enhancing its plans for domestic and international expansion. Despite the recent Alaska Air incident causing a crisis of confidence in Boeing, Akasa Air remains committed to its new order.
The airline, currently operating 22 Max jets, intends to rely primarily on sale and leaseback financing for its ambitious fleet expansion.
Boeing’s safety record and quality control have faced renewed scrutiny, with US regulators grounding Max 9 aircraft. Although no fatalities occurred in the Alaska Air incident, it has intensified concerns about Boeing’s overall safety practices.
This skepticism has led to a 22% decline in Boeing shares this year, reflecting apprehensions about potential delays in plane deliveries due to increased regulatory scrutiny.
Akasa Air’s recent deal contributes to a trend of significant orders from Indian carriers, driven by the anticipated rise in air travel demand fueled by the country’s expanding middle class and the availability of affordable ticket prices from budget airlines.
Leading Indian carriers like IndiGo and Air India have already inked substantial agreements, surpassing 900 aircraft collectively with both Boeing and Airbus.
Despite Indian airlines not operating the same type of jet involved in the Alaska Air incident, passengers on social media have expressed hesitancy towards flying any variant of the 737 Max, including those of Akasa.
The 737 Max series has been associated with severe safety and design issues, notably the tragic Lion Air and Ethiopian Airlines crash that claimed 346 lives, marking some of the most significant failures in recent aviation history.
This lingering concern among passengers underscores the broader challenges Boeing faces in restoring confidence in the 737 Max.
Akasa Air recently reported the completion of a comprehensive inspection of its entire operational fleet of 737 Max aircraft, affirming the absence of any adverse findings.
Competing in India’s fiercely contested aviation market, Akasa contends with dominant players IndiGo and Air India, which collectively control nearly three-quarters of the market.
Despite facing challenges, such as schedule reductions due to pilot poaching by rivals and concerns arising from the death of billionaire investor Rakesh Jhunjhunwala in 2022, Akasa asserts a 4.4% market share.
The recent Boeing deal announced by Akasa is positioned as evidence of the airline’s solid financial foundation.
This strategic move not only underscores Akasa’s commitment to safety through fleet inspections but also signals confidence in its ability to navigate challenges and compete effectively in the dynamic Indian aviation landscape.
Operating in 18 Indian cities, Akasa Air covers prominent routes such as the high-traffic Mumbai-New Delhi connection.
Looking ahead, the airline aims to amplify its reach by extending its network to encompass destinations in both the Middle East and Southeast Asia.
This expansion strategy positions Akasa to tap into new markets beyond India, strategically positioning itself as it ventures into international routes while maintaining a robust presence in the domestic aviation landscape.
