AI considers ordering Boeing 737-Max jet for fleet expansion

Air India was considering placing an order for Boeing Co 737-Max planes to expand its fleet, a person with direct knowledge of the plan said.

The planes won't replace the state-run carrier's current old-version 737s, instead would grow the airline's fleet, the person said, who asked not to be identified because plans are private. No final decision on the purchase has been taken yet, said the person, who didn't elaborate on the number of planes the carrier plans to order.

Boeing India spokeswoman Ashmita Sethi did not have an immediate comment to offer.

Indian carriers are expanding to take advantage of rising travel demand even as high fuel charges within the country and below-cost fares mean most of the airlines lose money. IndiGo, the nation's biggest airline by market share, ordered 250 A320neo single-aisle planes from Airbus Group NV in October, following the no-frills carrier's previous orders for 280 aircraft from the A320 family.

Air India also plans to lease 40 turboprop planes from France's Avions de Transport Regional GIE, which the carrier's regional unit Alliance Air will use to connect smaller cities, the person said. Air India has already placed an order for five turboprop planes, he said.

Air India plans to sell real-estate assets to trim its $6.5 billion debt load, an aviation ministry official said Jan. 22. The airline hasn't turned an annual profit since its 2007 merger with state-owned domestic operator Indian Airlines Ltd.