Air India Postpones Boeing Option Exercise Amid Production Backlog
Air India has temporarily halted exercising its outstanding options for additional Boeing aircraft purchases, according to Chief Executive Campbell Wilson. The decision was made until the planemaker clears its current production backlog.
In an interview, Wilson stated, "We don't want to commit to anything until we have clarity on delivery timelines. Similarly, Boeing is hesitant to make further commitments without a clear understanding of their production capabilities."
In 2023, Air India placed substantial orders for 250 new aircraft from Airbus and 220 from Boeing to modernize its fleet. The airline also secured options to purchase an additional 70 Boeing planes.
However, Boeing's ongoing production constraints, imposed by the FAA following a door failure incident on an Alaska Airlines aircraft, have prompted Air India's decision to defer its option exercises. Boeing is currently limited to producing 38 planes per month.
[Joanna Plucinska reporting; Toby Chopra editing]