Indian billionaire investor Rakesh Jhunjhunwala’s soon to be launched Akasa airlines and US aerospace giant Boeing announced that the Indian airlines was going to purchase 72 Beoing 737 Max airplanes, including 737-8 and 737-8-200, a deal that will bring $9 billion for the aircraft manufacturer.
Akasa air, a brand of SNV aviation, plans to launch its first flight sometime next year. This will be the third Indian airline, after Jet Airways and SpiceJet which will be flying Boeing 737. Majority of Indian airlines use aircraft made by Airbus.
This $9 billion deals come as a much needed relief for Boeing which is facing troubled times. Earlier this year, the company reported its first quarterly profit of $567 million since 2019. It had to cut 1000s of jobs in recent times due to the pandemic and the grounding of its 737 Max airliner. The announcement though did not make any positive impact on the Being’s perception and performance in the New York Stock Exchange. Its shares which opened at $232.94 were trading at $230 at the time of the filing of the story.
The deal was announced at the ongoing Dubai airshow byAkasa Air CEO Vinay Dube. “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. 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 told the media.
Commenting on the development, Stan Deal, CEO and Boeing Commercial Airplanes President, stated that Boeing 737 Max was the perfect airplane for Akasa Air. “We are honored 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 CEO. “The 737 MAX, with its optimized performance, flexibility and capability, is the perfect airplane to establish Akasa Air in the Indian market and ensure it effectively grows its network.”
According to a Boeing spokesperson, the 737 MAX family delivers superior efficiency, flexibility and reliability while reducing fuel use and carbon emissions by at least 14% compared to airplanes it replaces. As per industry experts, 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 $320 billion over the next 20 years.