In a much-needed boost for Boeing, India's newest airline, Akasa Air, has placed an order for 150 Boeing 737 Max aircraft. This marks the first major order the troubled planemaker has received since the alarming Alaska Airlines incident, where a part of the fuselage of a 737 Max 9 detached mid-flight. The order, which was finalized in December, includes the 737 Max 10 and 737 Max 8-200 models, slated for delivery through 2032. However, the grounded Max 9 planes are not included in this agreement.
The CEO of Akasa Air announced the order at an event in Hyderabad, emphasizing the efficiency and versatility of the 737-10 and 737-8-200 models in meeting the region's soaring demand for air travel. The news comes amidst a string of setbacks for Boeing, including the recent Alaska Airlines emergency landing resulting from a detached aircraft wall in a new 737 Max aircraft. This incident raises further concerns about the reputation of the 737 Max, which was already grounded for 20 months following fatal crashes in 2018 and 2019.
Boeing's shares have plummeted nearly 20% this month due to the ongoing issues surrounding the 737 Max. Analysts at Wells Fargo have also warned that the investigation into the Alaska Airlines incident could reveal additional problems for the aircraft manufacturer, particularly related to quality control and engineering challenges that have plagued the company in recent years.
Adding to Boeing's embarrassments, US Secretary of State, Antony Blinken, had to change planes on his return from the World Economic Forum in Davos after his modified Boeing 737 experienced what the press was informed was a critical failure due to an oxygen leak. These high-profile incidents further exacerbate the challenges Boeing is facing in rebuilding public confidence in its aircraft.
Despite these setbacks, Akasa Air's CEO, Vinay Dube, expressed his commitment to maintaining the highest safety standards in global aviation. He believes that this historic aircraft order will pave the way for Akasa Air to become one of the top 30 leading airlines in the world by the end of this decade. Akasa Air, which was launched just last year, is not alone in its interest in Boeing planes. In 2021, Air India, one of the country's major carriers, announced its intention to purchase 220 Boeing aircraft, making it one of the largest orders in Boeing's history.
The Indian aviation market is experiencing rapid growth, with the government eyeing the possibility of becoming the world's largest aviation market by 2047. It is crucial for Boeing to capitalize on this opportunity by ensuring the smooth delivery and operation of the ordered aircraft. The company's ability to address the ongoing concerns surrounding the 737 Max, while maintaining a strong focus on safety, will be crucial to rebuilding trust in the brand and positioning itself for future success in the Indian market and beyond.