Business Standard

Air India's mega jet deal with Airbus, Boeing held up by engine-cost debate

Air India has spent months negotiating an order of about 400 narrowbody and 100 widebody jets that would allow the country's flag carrier to upgrade service and reliability


Siddharth Philip, Julie Johnsson and Anurag Kotoky | Bloomberg
Air India Ltd.’s order for as many as 500 aircraft from Airbus SE and Boeing Co. is being held up by an impasse with engine makers powering the 737 Max, dragging out what stands to be one of the biggest single purchases in civil aviation history. 

CFM International, the General Electric Co. and Safran SA joint venture, is reluctant to offer big discounts on engines and maintenance that typically accompany mega orders, according to people familiar with the negotiations. The deadlock centers on the hourly rates Air India would pay for repairs, said one of the people, asking not

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 20 2023 | 6:20 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to