Aircraft Orders & Deliveries

Air India Orders 30 Boeing 737 MAX Jets to Expand Fleet

Air India finalizes order for 30 Boeing 737 MAX aircraft including 737-8 and 737-10 models to boost domestic and regional network expansion.

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This article is based on an official press release from Boeing.

Air India Expands Single-Aisle Fleet with Order for 30 Boeing 737 MAX Jets

On January 29, 2026, Air India finalized a firm orders for 30 additional Boeing 737 MAX aircraft. The deal, which exercises previously held options, includes 20 of the standard 737-8 model and 10 of the larger 737-10 model. This strategic acquisition is designed to bolster the airline’s domestic and regional network as it continues its transformation under Tata Group ownership.

According to the official announcement from Boeing, the order finalizes 10 737-10s that were previously listed as “unidentified” on the manufacturer’s orders and deliveries website. The agreement brings Air India’s total backlog with Boeing to nearly 200 aircraft, a mix that includes both single-aisle jets for domestic growth and widebody aircraft for international expansion.

The move underscores the carrier’s aggressive strategy to capture a larger share of India’s booming aviation market, currently dominated by low-cost carrier IndiGo. By locking in delivery slots for these fuel-efficient jets, Air India aims to increase frequency on metro routes and expand into Tier-2 and Tier-3 cities.

Breakdown of the Order

The purchase is split between two distinct variants of the 737 MAX family, each serving a specific operational role within Air India’s network strategy. All 30 aircraft will be powered by CFM International LEAP-1B engines, which offer a 15-20% improvement in fuel efficiency compared to previous-generation aircraft.

The 737-8 and 737-10 Variants

The majority of the order consists of 20 Boeing 737-8 jets. This variant is widely regarded as the core of the MAX family, offering a balance of range and capacity suitable for high-frequency domestic and short-haul regional routes. With a range of approximately 3,550 nautical miles, the 737-8 provides the versatility needed for Air India’s diverse route map.

The remaining 10 aircraft are the 737-10 model, the largest variant in the MAX family. According to Boeing, this aircraft is designed to carry more passengers at the lowest cost per seat among single-aisle aircraft. The 737-10 can seat up to 230 passengers in a single-class configuration, though Air India is expected to deploy a two-class layout carrying between 188 and 204 passengers.

“This additional order for 30 Boeing 737 aircraft is part of our broader fleet strategy to position Air India firmly for the future, as a world-class global carrier that India deserves and the world expects.”

, Campbell Wilson, CEO & MD, Air India

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Strategic and Financial Context

While the list price for the deal is estimated at approximately $3.8 billion based on 2025 estimates, with the 737-8 valued around $121.6 million and the 737-10 at $135.9 million, industry standard discounts mean the actual transaction value is likely significantly lower. Market estimates suggest the real value of a new 737-8 is closer to $55 million.

Delivery and Certification

Deliveries for these aircraft are scheduled to remain steady over the next few years. A key component of this timeline is the certification of the 737-10. As of January 2026, Boeing is in the final stages of certifying the variant, with entry into service expected to follow shortly after. This would make Air India one of the first operators to introduce the -10 variant into the Indian market.

AirPro News Analysis

This order represents a shift from immediate recovery to long-term capacity planning for Air India. The Indian aviation market is effectively a duopoly, with IndiGo holding a commanding 63-65% market share and the Air India Group (including Air India Express and Vistara) holding approximately 26-27%. To compete effectively, Air India must match IndiGo’s scale and cost efficiency.

The selection of the 737-10 is particularly notable. By opting for the largest variant, Air India is prioritizing seat-mile economics on trunk routes (such as Delhi-Mumbai), where slot constraints limit the ability to simply add more flights. The 737-10 allows the airline to maximize revenue per departure, a critical advantage in slot-constrained airports. Furthermore, the decision to exercise options now ensures Air India retains access to delivery slots in a supply chain that is heavily constrained globally.

Frequently Asked Questions

Is this a new order?
Technically, no. This deal represents the exercise of existing options from previous agreements. The 10 737-10s were previously listed as “unidentified” on Boeing’s books.

When will passengers see these planes?
Deliveries are expected to be steady over the next few years. The 737-10 is expected to enter service following its certification, which is anticipated in 2026.

Why did Air India choose the 737-10?
The 737-10 offers the lowest cost per seat of any single-aisle Boeing jet. It allows Air India to carry more passengers on high-demand routes without adding more flights, which is vital for profitability on dense domestic sectors.

Sources

Photo Credit: Boeing

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