Akasa Air CEO Vinay Dube announced the order of the Boeing 737 Max 10 and 737 Max 8-200 planes at an airshow in the southern Indian city of Hyderabad.
The airplanes will increase the airline’s total Boeing orders to 226, Dube said. It currently operates a fleet of 22 Boeing 737 Max 8 and Max 8-200 planes.
None of the planes is the same model as the Alaska Airlines Boeing 737 Max 9 on which a door plug blew out shortly after taking off on Jan. 5 from Portland, Oregon, leaving a hole in the fuselage. The cabin lost pressure and the plane was forced to descend rapidly and make an emergency landing. No serious injuries were reported.
Since launching operations in 2022, Akasa Air has captured about 4 percent of India’s domestic market, serving 18 destinations. It is looking to expand its network in India and South Asia.
“This milestone demonstrates the strength of our partnership with Akasa Air,” Boeing Chief Operating Officer Stephanie Pope said in a statement.
Boeing’s 2023 Commercial Market outlook forecasts the delivery of 2,705 new commercial airplanes over the next 20 years for the South Asian region, of which nearly 90 percent will be single-aisle jets.
Air India, IndiGo, SpiceJet, Vistara, Air India Express and Akasa Air are among India’s main airlines.
Boeing Co. said on Wednesday it was halting production of 777x through 2023 due to certification problems as well as weak demand for the wide-body jet, and disclosed $1.5 billion in abnormal costs related to the program.
Shares of the planemaker fell 4 percent to $160.32 before the bell.
For its troubled 787 Dreamliner program, the planemaker said it has submitted a certification plan to the US regulator in a step toward resuming deliveries halted for nearly a year by an industrial snafu costing about $5.5 billion.
The 787 Dreamliner, along with the 737 MAX, are vital to the financial health of Boeing, which is trying to bounce back from successive crises.
It has been producing the 787 jets at a low rate while it undertakes inspections and repairs for structural flaws amid intense regulatory scrutiny.
Boeing has “completed the required work on initial airplanes and is conducting check flights,” Chief Executive David Calhoun said, a development that should cheer airlines that have cut back on flying long routes due to delivery delays.
Calhoun did not specify on Wednesday when Boeing would resume 787 deliveries.
Reuters reported last week it had advised key airlines and parts suppliers that the deliveries would resume in the second half of this year.
Boeing also confirmed reports of a delay in handing over the first 777X jet to 2025, but said it remains confident in the program.
The pause in 777-9 production will help Boeing to add 777 freighter capacity starting in late 2023, Calhoun said.
Reuters reported last month that the Federal Aviation Administration had warned Boeing that existing certification schedules for the 737 MAX 10 and 777X were “outdated and no longer reflect the program activities.”
The planemaker said in its first-quarter earnings report that it was on track to generate positive cash flow for 2022 as it ramps up deliveries of 737 MAX aircraft.
It reported a quarterly core loss per share of $2.75, compared with $1.53 per share a year ago. Revenue fell to $13.99 billion from $15.22 billion.
