Air India’s $50 bn deal for 70 wide-body jets to be split between Airbus & Boeing

FARNBOROUGH (England): Air India is moving towards a decision on a $50 billion jet order under new owners Tata Group to be split between Airbus and Boeing, but the deal will not come in time to galvanise a relatively quiet Farnborough Airshow, industry sources said.

Both planemakers are making a “final push” with the order set to include up to 70 widebody jets including Airbus A350s and Boeing 787s and 777s, and up to 300 narrowbodies, they said.

One of the sources said a decision may be “imminent” though another cautioned that the outcome remained unpredictable.

Both planemakers declined comment. Tata Group did not immediately respond to a request for comment.

Boeing CEO Dave Calhoun flew to India ahead of this week’s airshow, where the U.S. company is keen to showcase a revival of its 737 MAX and both planemakers are hungry for deals in the depressed widebody market, two sources said.

Boeing declined to comment on travel by its senior executives.

Reuters reported on Sunday that officials from Airbus and Boeing had visited India last week in pursuit of a combined order for 200-300 narrowbodies and 30-70 wide-body jets, but that hopes of an order at Farnborough were on hold. read more The deal would be worth some $50 billion at list prices, but closer to $20-25 billion after steep industry discounts.

India has the world’s fastest-growing air travel market, according to Airbus forecasts published last week.

Its domestic market is projected to grow by 6.6 per cent a year on average over the next two decades, more than three times the U.S. average of 2.1 per cent, but the country’s goal of significantly boosting air travel has been complicated by weak infrastructure.