India has emerged as a fast-growing aviation market in the last two decades, now standing as the third-largest in the world. Airbus and Boeing have quickly cashed in on this demand, selling hundreds of aircraft to airlines in the country. But which of these manufacturing giants have come out on top in India, and can they remain there? Here’s a look at Airbus and Boeing’s presence in India.
Bread and butter
For the low-cost dominated and razor-thin margin market of India, efficiency and capacity are the bread and butter for airlines. This has meant the Airbus A320 and Boeing 737 families have emerged as the foremost planes in the airline fleets, accounting for roughly 85% of planes operating in India today.
However, the rivalry between Airbus and Boeing is intense, with both jockeying for massive aircraft orders in recent years. Boeing began the century with a strong advantage in the market. Jet Airways, then the largest airline, used the 737 for its domestic and short-haul international routes, and had substantial orders for future types. Airbus was relatively behind, with Indian Airlines (later merged with Air India) and Kingfisher being its biggest customers.
However, the market was moving toward a huge disruption: low-cost airlines. From 2005 onwards, three major budget airlines arrived on the market scene: SpiceJet, IndiGo, and GoAir (now Go First). With a clean slate of aircraft orders, Airbus and Boeing scrambled to provide new fleets. However, these budget carriers had major orders in mind, breaking national records in terms of value.
Huge
The first significant order for Airbus from India came from now low-cost giant IndiGo. The then-unknown carrier ordered 100 Airbus A320s, a multi-billion deal and the biggest of any Indian airline at the time. This greatly increased Airbus’ order book in the country and began catching up to Boeing.
Boeing had been supplying planes to Jet Airways and Air India, which took on new 737s, 747s, and 777s, making it a lucrative deal. While GoAir also opted for the A320 family, Boeing bagged SpiceJet as its first major budget airline deal. However, the shift in market share had already begun.
IndiGo continued to double down on the A320 family, ordering a giant 180 A320neos in 2011. Meanwhile, Boeing was suddenly struggling to find large aircraft orders in India. Air India stopped ordering new planes from the American giant after 2006, and Jet Airways’ growth had slowed in the face of intense competition from budget airlines. While deliveries of the 787 and 777 would carry on for years, new orders were becoming tougher to come by.
SpiceJet had taken delivery of nearly two dozen 737s by 2011, helping Boeing’s deliveries. However, GoAir had also taken a dozen planes from Airbus and had many more scheduled for delivery. The balance had begun shifting.
All in and bust
With the release of the 737 MAX in 2014, Boeing suddenly received a shot in the arm. SpiceJet and Jet Airways both ordered a massive 200 aircraft each to replace their 737NGs and grow their market presence. After a few years of order droughts, Boeing finally had a widebody that sparked an interest.
Airbus wasn’t too far behind, however. The European giant saw orders from GoAir for 72 new A320neos in 2011. IndiGo followed up its own record-breaking order with another one for 250 A320neos, keeping Airbus and Boeing neck and neck heading in the late 2010s.
However, fast forward a few years and Boeing was in big trouble. Jet Airways’ financial woes had meant it was taking fewer planes than anticipated, hurting deliveries. However, the biggest blow was the grounding of the 737 MAX in March 2019, which remains grounded even at the time of writing. Just a month later, Jet Airways officially went bankrupt, suspending all flights and canceling orders.
Suddenly, Boeing’s market presence in India fell by over half. The number of active 737s fell by over 50% as lessors quickly seized planes, and Boeing’s order book for the MAX was halved nearly overnight. SpiceJet also had to pause MAX deliveries, hurting its own expansion. While the low-cost carrier absorbed nearly 30 Jet 737NGs, these were temporary while the MAX remained grounded.
Airbus era
While Boeing dealt with crisis after crisis in India, Airbus had a much smoother ride. Air India (narrowbodies), GoAir, Vistara, AirAsia India, and IndiGo were all relying exclusively on the Airbus A320 family for its operations. Combined, these airlines have orders for over 800 aircraft, with IndiGo being Airbus’ biggest global customer.
The A320neo has become the most popular plane in India, dominating fleets across carriers. Meanwhile, the 737 has slowly been sliding down in popularity in recent years. Currently, Air India Express operates a fleet of 24 and SpiceJet flies 65 (minus 13 MAX).
As of today, the 737 accounts for less than 15% of India’s operating commercial aircraft. The A320 family accounts for a much biggest 70%. This gap is expected to widen as the 737 MAX shows no signs of recertification or delivery to SpiceJet. However, this could be changing in the coming years.
Widebodies
Widebodies account for a tiny part of India’s aviation market (<10%). However, they are poised to grow in the coming years as new airlines enter the fray and demand for international demand rises. Here, Boeing holds an indisputable lead with a 100% market share.
Air India is India’s biggest widebody used, with four 747s, 16 777s, and 27 787-8 Dreamliners, it also doesn’t have any outstanding orders. Second is Vistara, which has taken delivery of two 787-9s and has four more on order. While these are small numbers compared to the narrowbodies in India, they give Boeing a huge advantage in the future.
As Vistara grows and Air India heads for privatization, Boeing will be trying hard to maintain its control of the widebody market. While Airbus could mount a challenge in the future, it is a steep climb. As international traffic recovers, expect to see this market segment become a new battlefield. With 250 aircraft orders up for grabs in the next decade, keep an eye out.
Everchanging
As with everything in aviation, one can never get too comfortable. This week, Indian startup airline Akasa Air is considering an order for 70 to 100 Boeing 737 MAXs, helping recertify the aircraft and jumpstarting Boeing’s presence in India again. If successful, Akasa could help Boeing regain its footing and compete with Airbus in the near future.
By 2030, India is expected to require nearly 2,000 new planes, both Airbus and Boeing predict separately. Which of these manufacturers secures more of these, remains to be seen.
What do you think about the future of the Indian aviation market? Let us know in the comments!
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