#Aircraftorder

[enterprisewired]

Korean Air Lines Makes Landmark Aircraft Deal Amidst Fleet Streamlining

Korean Air’s $14 Billion Airbus Order Marks Significant Shift in Supplier Preference

In a groundbreaking move, Korean Air Lines Co. has opted for Airbus SE over its traditional supplier Boeing Co., securing a monumental deal worth $14 billion for 33 Airbus A350 wide-body jets. This strategic decision comes as the Seoul-based carrier prepares to streamline its fleet ahead of its impending merger with Asiana Airlines Inc.

Strategic Shift: Airbus Chosen Over Boeing

The order comprises 27 of Airbus’s flagship A350-1000, along with six A350-900s, effectively bypassing Boeing’s yet-to-be-certified 777X. Bloomberg News had previously hinted at Korean Air’s inclination towards a significant deal with Airbus, projecting an order of at least 20 A350 jets.

Korean Air Lines highlighted the eco-friendly attributes of the A350, emphasizing its alignment with the airline’s sustainability objectives and its role in preparing for the integration of Asiana Airlines. The deal, valued at 18.5 trillion won, underscores Korean Air’s strategic vision and readiness for future aviation dynamics.

Market Dynamics and Fleet Optimization

The surge in demand for larger jets, coupled with bullish projections for travel growth, has fueled the momentum behind wide-body aircraft orders. Korean Air’s move to simplify its fleet and lower costs ahead of its merger with Asiana resonates with broader industry trends, reflecting a strategic approach to fleet optimization amidst evolving market conditions. Regulatory approval in the US is the final hurdle for the merger to proceed.

Airbus Gains Momentum; Boeing Secures Consolation Order

On the same day, Airbus celebrated another triumph as Japan Airlines Co. sealed a deal for 42 aircraft, including 21 A350-900s and 11 A321neos. In contrast, Boeing secured a consolation order of 10 787-9s. The impending merger with Asiana promises Korean Air Lines a substantial influx of modern Airbus jets, complementing its existing fleet and positioning the airline strategically in the market.

Implications for the Aviation Industry

The order signifies a significant milestone for Airbus, particularly as its A350-1000 secures its 10th new operator in the span of 12 months. Notably, Delta Air Lines Inc., a major stakeholder in Korean Air’s parent company Hanjin KAL Corp., has contributed to this series of successful deals. Meanwhile, Boeing faces heightened scrutiny over the safety of its aircraft following recent incidents, underscoring the dynamic landscape of the aviation industry.

As Korean Air Lines embarks on this transformative phase, the industry watches closely, anticipating the ripple effects of this monumental aircraft deal amidst evolving market dynamics and competitive pressures.

Also Read: FAA Recommends Inspections for Boeing 737-900ER Door Plugs Amid Safety Concerns

[jsbmarketresearch01]

Air India to Finalize a Deal of 500 Jumbo Planes Soon, Tata Group to Give the Airline New Wings

Air India is determined to revive the airline and pitch it against larger rivals by sealing half of the order for 495 jets, worth billions of dollars. The deal is with CFM International and General Electric (engine suppliers) and Boeing. The order is for 10 Boeing 777X, 20 Boeing 787s, and 190 Boeing 737 MAX narrowbody planes, marking the one-year completion from when the Tata Group took ownership of Air India. In the coming days, the second half of the order including that for 40 Airbus A350 widebody aircraft and 235 Airbus (AIR.PA) single-aisle jets may also get wrapped up formally.

The Aero India air show in February may throw some light on the deal, which has not yet been confirmed by Air India, as well as the manufacturers of Airbus, and Boeing. The order, once finalized, aims to put Air India in the league of large global airlines and make it an influential customer for plane makers and suppliers at a time when its home market is seeing a strong post-Covid travel surge, the airline looking for better opportunities, and rise up to its original status.

Rather, make it a lot better by fighting off the dust of the past, and giving a fresh perspective to how Air India will function hereon. Air India is already in talks to close a deal of around 500 jets, putting the airline in an influencing position not just in India, but abroad as well. Because of the surge in travel by people after the Covid lockdown came to an end. In 2022, domestic passenger air traffic grew by 47% for India. But Air India was posed by competition by international and local rivals given the connectivity.

While the majority of outbound traffic from India is taken care of by Qatar Airways and Emirates of the Middle Eastern airlines, Air India has its eyes set on carving its own niche soon overseas as well. For the next 5 years, Air India is planning to capture domestic air travel, accounting for 30% of its sales, competing with IndiGo, the current market leader. The airline also intends to increase its share in international travel, according to Campbell Wilson, the new Chief Executive. With the aim to restore its reputation overseas and in India, Air India plans to reform and host world-class planes.

Already 20 aircraft are back in service, the ones that were grounded for years because of insufficient funds and lack of parts. The airline is also prepared to spend more than $400 million to restructure the fleet of 13 777 and 787-8s aircraft and 27 Boeing planes. The market share for Tata’s airlines – Vistara, Air India, and the other two budget carriers is 25% combinedly after the joint venture with SIAL.SI (Singapore Airlines). But a significant spike in the airline’s quality of service and fleet will also oversee certain competition and challenges from rival Gulf carriers and domestic airlines.

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[newshourbd]

Boeing Co looked poised to beat Airbus for aircraft orders in 2018

@Boeing Co looked poised to beat @Airbus for #aircraftorders in 2018

Boeing Co looked poised to beat European arch-rival Airbus for aircraft orders in 2018 by a wide margin after clinching billions of dollars in new business from Nigeria’s Green Africa Airways and Saudi Arabia’s flyadeal.

The world’s largest planemaker had already notched 690 net airplane orders through end-November, the last full month reported, surpassing Airbus’ 380 total orders minus…