On 22 June, Air India declared that it will temporarily cease operations on three routes and cut back on 118 weekly flights using narrow-body aircraft across 19 routes.
The move comes shortly after the airline, which is owned by the Tata Group, announced that it will temporarily reduce the number of international flights using wide-body aircraft by 15%.
The airline said in an official announcement that it was temporarily reducing its overall narrow-body network by less than 5%. According to the announcement, Air India’s services would be temporarily suspended on three flights, and their frequency will be reduced on 19 routes as a result of this voluntary decision. The modifications will take effect at least until July 15, 2025.
Restructured Flight Operations
Until at least mid-July, seven weekly flights on the Bengaluru-Singapore, Pune-Singapore, and Mumbai-Bagdogra (AI551/552) routes will not operate. As part of the operational changes, flight frequencies on a number of important domestic routes, like Delhi-Bengaluru and Delhi-Mumbai, would also be decreased.
The interim cuts, according to Air India, are meant to “minimise last-minute inconvenience to passengers” and strengthen network-wide operational stability.
Citing ongoing safety inspections and operational difficulties following last week’s catastrophic disaster involving one of its Boeing 787 Dreamliners, Air India stated on June 18 that it would cut foreign operations on its wide-body aircraft by 15% over the next few weeks.
The crash of flight AI171, which claimed 241 lives and was the deadliest aviation accident in ten years, is still being investigated by authorities.
Enhanced Safety Check on Boeing 777 Fleet
In a statement released on June 18, AI stated that the 15% reduction essentially increases the number of reserve planes available to handle unforeseen interruptions and will help it guarantee operational stability, improve efficiency, and limit passenger discomfort.
The airline has said that it will conduct more thorough safety inspections on its fleet of Boeing 777s. Even if the capacity reduction occurs during the busiest travel season, the airline will at least be able to notify customers in advance that their flights would be cancelled and use AI to assist them in finding other arrangements.
According to AI’s statement, the investigative authorities are still working to determine what caused the (AI 171) accident. The DGCA had ordered AI’s fleet of B787-8/9 aircraft to undergo “enhanced safety inspections”.
Inspections on 26 of the 33 B787s have already been finished and are approved for service; the remaining B787s will undergo inspection in the next several days. The fact that 26 aircraft have received clearance demonstrates our commitment to safety protocols.
With immediate effect, Air India would cut its international wide-body flight operations by 15% “at least” till the middle of July. The airline uses its wide-body aircraft to run over 70 foreign flights every day.
Due to a number of variables, such as the closure of numerous nations’ airspace, longer travel times to and from the West, and extra scrutiny of Boeing 787s following the AI 171 incident on 12 June, there are fewer twin aisles available.
Between June 2 and June 17, AI operated 462 flights on its wide-body fleet of Boeing 787s, B777s, and Airbus A350s while cancelling 83 flights during that time. This indicates that, to the inconvenience of passengers, 15.2% of the 545 scheduled flights were cancelled.
AI has thereby reduced wide-body flights by 15% by using that ratio and matching schedules to actual flying capacity. Even though the introduction of new aircraft from Boeing and Airbus has been much slower than expected, AI has overextended itself in the last two years in terms of crew and equipment by drastically increasing flights.
Therefore, if an aircraft was grounded or delayed, it affected the flight it was scheduled to conduct next. Since the DGCA ordered additional checks of B787 Dreamliners last Thursday, this has gotten worse.
Enhanced Safety Check on Boeing 777 Fleet
In a statement released on June 18, AI stated that the 15% reduction essentially increases the number of reserve planes available to handle unforeseen interruptions and will help it guarantee operational stability, improve efficiency, and limit passenger discomfort.
The airline has said that it will conduct more thorough safety inspections on its fleet of Boeing 777s. Even if the capacity reduction occurs during the busiest travel season, the airline will at least be able to notify customers in advance that their flights would be cancelled and use AI to assist them in finding other arrangements.
According to AI’s statement, the investigative authorities are still working to determine what caused the (AI 171) accident. The DGCA had ordered AI’s fleet of B787-8/9 aircraft to undergo “enhanced safety inspections”.
Inspections on 26 of the 33 B787s have already been finished and are approved for service; the remaining B787s will undergo inspection in the next several days. The fact that 26 aircraft have received clearance demonstrates our commitment to safety protocols.
Ongoing Middle East Situation Also Adding Pain to the Agony
The statement also stated that AI’s top priority is still ensuring the safety of its passengers, crew, and aircraft, and it will continue to work with authorities to do so.
AI added that there have been some disruptions in its international operations over the last six days, resulting in 83 cancellations. This is because of the geopolitical tensions in the Middle East, night curfews (at airports abroad), the continuous enhanced safety inspections, and the necessary caution being taken by the engineering staff and Air India pilots.
AI promises to let passengers know ahead of time and try its best to get them a seat on another aircraft. Additionally, passengers will have the option of receiving a complete refund or rescheduling their trip at no additional cost.
According to CEO Campbell Wilson, Air India aims to shift operations to alternative Maintenance, Repair and Overhaul (MRO) facilities in order to lessen its need for Turkish Technic for the maintenance of its wide-body aircraft. Given current geopolitical events surrounding Turkiye, the action was taken.
Turkiye denounced India’s anti-terror efforts and expressed solidarity for Pakistan in May. On May 15, the Turkish business Celebi Airport Services India Pvt Ltd had its security clearance revoked by India’s Bureau of Civil Aviation Security (BCAS), which cited “national security” concerns.
IndiGo was then given a last three-month extension by the Directorate General of Civil Aviation (DGCA) on May 30 to continue operating two damp-leased Boeing 777 aircraft from Turkish Airlines. The lease must be terminated before August 31 in order for the extension to remain in effect.
In response to enquiries about Air India’s continued use of Turkish technology for wide-body aircraft maintenance, Wilson emphasised the airline’s responsiveness to public opinion and geopolitical changes while pointing out the global nature of aviation supply chains.
“We are obviously sensitive to the national sentiment and perhaps the national wishes, but it does take a while to adjust when the circumstances change around us,” Wilson said. “So, regardless of which country we are talking about, we would clearly take cognisance of what people like us to do and expect us to do,” Wilson stated in an interview to media news agency.
Air India Relying Heavily on Turkish Technic
Currently, Turkish Technic does extensive maintenance on a subset of Air India’s Boeing 777 and 787 aircraft.
According to Wilson, until local capacity is established, Air India will temporarily reroute aircraft in need of MRO services to facilities in the US, the Middle East, South East Asia, and, on a limited basis, still to Turkish Technic.
He went on to say that in light of this latest development, Air India will try to reevaluate the locations of its planes, send less to Turkiye, and send them elsewhere. “But that does take some time because aircraft have to be maintained… We are cognisant of recent developments, and we will look to adjust our plans,” he stated.
Air India Witnessing Substantial Growth
Wilson claims that after its privatisation, Air India has seen significant expansion in its passenger and freight operations.
While the revenue from passengers has doubled over this period, the revenue from the cargo segment has more than tripled.
He said that Air India is a lot more credible a participant in the cargo industry because of its vast potential, non-stop service into major areas across the world, increased focus on cargo, improved systems, and more consistent product delivery. There’s a big upside potential.
As part of a global staff reduction initiative, American aircraft manufacturer Boeing sacked over 180 workers at its engineering technology centre in Bengaluru, Karnataka, according to a media agency. India is a significant market for Boeing, where the corporation employs about 7,000 people. Up to 180 employees at the Boeing India Engineering Technology Centre in Bengaluru were let go in the December quarter of 2024. Boeing did not issue a formal statement till now.
No Negative Effect on Activities
According to the agency’s assessment, strategic changes were made that affected a small number of personnel without having a negative effect on government operations or customers. According to the report, some jobs were eliminated and some new ones were added. Reductions in India were more measured and clearly focused on upholding safety, quality, and customer service requirements. Complex, cutting-edge aerospace work is done at the Boeing India Engineering & Technology Centre (BIETC) in Bengaluru and Chennai. One of the company’s biggest investments outside of the United States is its engineering and technology campus in Bengaluru, which it owns entirely. According to its website, Boeing sources over $1.25 billion a year from a network of over 300 suppliers in India.
According to the company’s website, Boeing still sources about $1.25 billion a year from a network of more than 300 suppliers in India, making it a significant market. Complex and cutting-edge aircraft engineering work is handled by BIETC’s Bengaluru and Chennai locations. One of Boeing’s biggest investments outside of the US is its engineering and technology campus in Bengaluru, which it owns entirely.
India’s Civil Aviation Sector
The International Air Transport Association (IATA) predicts that by 2030, India will surpass China and the United States as the world’s third-largest air passenger market. Additionally, according to the India Brand Equity Foundation (IBEF), a division of the Department of Commerce, Ministry of Commerce and Industry, the number of aircraft operating in the sector has increased due to the growing demand in the industry. By 2027, it is anticipated that there will be 1,100 aircraft. There were 196.91 million passengers (including domestic and international) in FY25 (till September 2024). In FY25 (as of June 2024), Indian airports reported 81 million domestic passengers, a 5.6% YoY increase, and 18.54 million overseas passengers, a 14.2% YoY increase, compared to the same period the previous year.
In FY24, Indian airports reported that domestic passenger traffic was 306.79 million, up 13.5% year-over-year, while foreign passenger traffic was 69.64 million, up 22.3% year-over-year. Comparing April-September 2024 to the same period the year before, domestic passenger traffic increased by 7.4% to 160 million, while foreign passenger traffic increased by 11.2% to 36.96 million. ICRA stated on December 19, 2023, that revenue growth for the Indian aviation sector is expected to be 15-20% in FY24 and 10-15% in FY25.
After around 30,000 machinists went on strike recently, Boeing said on September 18 that it would temporarily furlough tens of thousands of employees. This decision was made in response to the strike, which halted manufacturing of Boeing’s best-selling 737 MAX and other airplanes.
In an email sent to staff, CEO Kelly Ortberg announced that the company will be implementing temporary furloughs over the next few days. These furloughs will affect a significant number of executives, managers, and employees residing in the United States. During the strike, “we intend to implement a rolling furlough policy in which those employees who have been selected will get one week of leave every four weeks,” Ortberg said.
The strike, which is Boeing’s first since 2008, is added to an already turbulent year for the aircraft manufacturer, which began in January when a door panel on a brand-new 737 MAX jet blew apart while it was in the air.
Additionally, Ortberg stated that he and other officials at Boeing “will take a commensurate pay reduction for the duration of the strike.”
During two days, conversations were held between Boeing and the International Association of Machinists and Aerospace Workers. Federal mediators were present during these discussions. After expressing its dissatisfaction with the first day of mediation, the union said that it had ended yet another day of negotiations with “no meaningful progress.”
Boeing’s Trouble Will Continue
The widespread furloughs are evidence that Ortberg is getting the firm ready to endure an extended strike, the ire of which is likely to make a quick resolution quite unlikely.
A prolonged labor dispute might end up costing Boeing several billion dollars, which would put more strain on the company’s finances and put its credit rating in danger.
Ben Tsocanos, the aerospace director at S&P Global Ratings, stated that it is highly improbable that the savings will be able to completely compensate for the expenses that stem from a lengthy strike.
In its first complete contract negotiations with Boeing in sixteen years, the union has been pressing for a raise of 40 percent over a period of four years. This is far more than the offer of 25 percent that the planemaker made, which was resoundingly rejected.
However, these actions, which included furloughs and a reduction in salary, amounted to “smoke and mirrors,” considering that the corporation had previously spent money on bonuses and remuneration for top executives.
To provide the impression that the company is attempting to cut costs, this is merely a component of their overall strategy.
Disruptions in Production
As a result of the strike, Boeing’s manufacturing of 737 MAX narrowbody jets, as well as its widebody aircraft, the 777 and 767, has been halted, which has caused delays in the delivery of these aircraft to airlines.
A prominent Chinese lessor, on the other hand, has reportedly stated that it placed a new order recently for 50 MAX airplanes, with delivery dates ranging from 2028 to 2031. This is an indication that the demand for Boeing aircraft over the longer term is still present.
Due to the fact that the manufacturer’s balance sheet is already loaded with $60 billion of debt, the factory said that it would be freezing recruiting in order to cut costs.
As a further measure that will be detrimental to its suppliers, the corporation has also ceased placing the majority of its orders for parts for all Boeing jet programmes, with the exception of the 787 Dreamliner.
A senior supplier referred to the most recent announcement as “panic mode” and stated that it highlighted the fact that Boeing has little room for maneuvering due to the fact that its balance sheet is already under a lot of strain.
The term ‘duopoly’ essentially refers to the intense competition between the European multinational Airbus SE and the American Giant Boeing Company within the jet airliner industry. Both companies are in the process of designing and manufacturing civil and military aerospace products. Between the two companies, Boeing is currently leading the market with a market share of 52%, closely followed by Airbus with 48%.
Companies that began to grow, and expanded quickly became market leaders and fierce competitors. The origin of the duopoly could be attributed to a series of mergers and acquisitions within the global aerospace industry. A deeper understanding can be gleaned from understanding the journey of both these companies independently.
Why Airbus and Boeing Dominate the Sky
The Boeing Company
Initially founded as Aero Products Company in Seattle, Washington in the year 1916 by lumber industrialist William E. Boeing, it was renamed Boeing Airplane Company a year later. The company initially supplied military aircraft for World War I. The company was also engaged in ferrying mail due to its profitability. In the year 1928, William Boeing formed another company named Boeing Airplane and Transport Corporation. He renamed it United Aircraft and Transport Corporation in 1929. United Aircraft and Transport Corporation went on an acquisition spree of several aircraft makers including Avion, Chance Vought, Sikorsky Aviation, Stearman Aircraft, Pratt & Whitney, and Hamilton Metalplane. In 1931, the group merged its four small airlines under one umbrella – United Airlines.
Boeing 777X
The Airmail Act, which came into force in 1934, effectively prevented companies from simultaneously delivering mail and manufacturing airplanes. This resulted in the company restructuring itself and United Aircraft and Transport was dissolved and three separate entities emerged from it – Boeing Airplane Company, United Aircraft, and United Airlines.
Between the 1960s and 1970s Boeing Airplane Company went on an expansion spree beginning with purchasing Vertol Aircraft Corporation, which was the biggest independent helicopter manufacturer of the time. Subsequently, it diversified its business interests into different industries like outer space travel, marine craft, agriculture, energy production, and transit systems, slowly and surely gaining a monopoly within the industry.
Since then, the company has consistently grown by partnering with Russian, Ukrainian, and Anglo-Norwegian organizations in 1995, to create Sea Launch that provided commercial launch services to geostationary orbit from floating platforms. It also acquired the satellite segment of Hughes Electronics in 2000. Boeing also completed its merger with McDonnell Douglas in August 1997. By 2001, Boeing moved its corporate headquarters from Seattle to Chicago and by the year 2018, it opened its first factory in Europe at Sheffield along with a research partnership with The University of Sheffield.
Airbus SE
The European multinational aerospace corporation primarily with three major divisions – Commercial Aircraft under Airbus S.A.S., Defence and Space, and Helicopters. The company was launched in 1970 as Airbus Industrie GIE as a pan-European (countries included were Germany, France, Britain, and Spain) effort to combat the rising Boeing monopoly globally. The company got its first break with the A300 in the year 1977. Registered in Leiden, Netherlands the ‘SE’ in its name means ‘societas Europaea’ which, essentially, allows the company to be registered as a European corporation as opposed to a national corporation. Through various corporate changes and restructuring, the company got its present name, Airbus SE in the year 2017.
Airbus A380
Building on the resounding success of its A300, which also essentially decimated its competition within the continent, the company launched the A320 which continues to enjoy commercial success even today. By the 1990s, commercial airline manufacturing was already a duopoly between these two giants, that continues to this day.
Between 2007 and 2016, both companies were fiercely competing with each other with Airbus receiving 9985 new aircraft orders and delivering 5644 aircraft and Boeing receiving 8978 new aircraft orders and delivering 5718.
Can the Duopoly be Broken?
Boeing and Airbus have dominated the commercial aviation market for almost three decades. Valued at approximately USD 190 billion, this market is considered to be the biggest and the most profitable in the world. Even though over time both these companies have faced issues with their aircraft, these giants together occupy 99% of the global market for large commercial airliners.
Although possible, the duopoly is extremely difficult to break due to various reasons –
1. The global market for medium and large commercial airlines is not big enough to support more than 2 players.
2. The entry barrier within the business is extremely high in terms of capital, expertise, and talent requirement not to mention the consistent operational maintenance required.
3. Initial investment recovery period is very long.
4. Business trust is extremely difficult to build in this industry that already has players with a proven track record.
Having said all this, the new Chinese passenger jet made by the aerospace company COMAC and named C919, showed itself off on its maiden flight at an airshow in November 2020. With its feature and its lower operating cost, it can, ultimately, make its place on the global stage and give stiff competition to the duopoly of Airbus and Boeing.
When it comes to aviation, safety is paramount in whichever airplane flies in the skies. Hence, whichever player, be it a new entrant or a veteran, can offer a safe flight will win the global war. The duopoly can very well become a triopoly within the next decade.
FAQs
Who is bigger, Airbus or Boeing?
The Airbus A380-800 is the world’s largest passenger aircraft with a maximum capacity of 853.
What is the name of Boeing’s most popular commercial airplane model?
Boeing’s most popular commercial airplane model is the Boeing 737. It has been in production since 1967 and is widely used by airlines around the world.
What is the name of the fighter jet that Boeing manufactures for the US military?
The name of the fighter jet that Boeing manufactures for the US military is the F/A-18 Super Hornet. It is a twin-engine, supersonic, all-weather fighter jet used by the US Navy and Marine Corps.
What is the name of Airbus’s most popular commercial airplane model?
The name of Airbus’s most popular commercial airplane model is the Airbus A320. It can seat up to 240 passengers.
What is the name of the Airbus aircraft that is currently the world’s largest passenger airliner?
The name of the Airbus aircraft that is currently the world’s largest passenger airliner is the Airbus A380. It is a double-deck, wide-body, four-engine aircraft that can carry up to 853 passengers in a single-class configuration, making it the largest commercial aircraft in the world.
Technology is the current force in the 21st century. We survive in the world of technology and it is constantly making an impact in our life, that we are now aiming for space. A newspaper once said that “we live in the world, which is getting smaller day-by-day, because of the technologies and the improvement in them.
The 21st century is the ‘Mother of Technologies’ since scientists constantly improving space technologies and the hefty investment by entrepreneurs. Today, the world business market is dominated by technology-based entrepreneurs and their business ventures in space. Let’s look at top space companies in the world.
Elon Musk has made living the dream to create a colony on Mars and he is creating the dream via his company SpaceX. SpaceX is a private American aerospace manufacturer and space transport service company headquarters in Hawthorne, California. It has made over 100 launches on its manifest representing about $12 billion in contract revenue.
In June 2019, SpaceX started to raise $300 million of investment from Ontario Teachers Pension Plan, which has $191.1 billion in assets under management. It owns a test site in Texas and operates three launch sites, with another under development.
2. Boeing
Boeing CST-100
The Boeing Company is an American multinational corporation that designs, manufactures, and sells aeroplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. It provides leasing and product support services.
It is one of the largest global aerospace manufacturers and is the world’s fifth-largest defence contractor in the world. It is marching forward with Apollo-style CST-100, a seven-person capsule, which was fully unveiled in 2014. It was ranked US$93.3 billion in sales, ranked 24th on the Fortune Magazine Fortune 500 list in 2018 and ranked 19th on the “World Most Admired Companies list (2018).
3. Virgin Galactic
Virgin Galatic Spaceship Two
Virgin Galactic is one of the leading space companies in the world. It is a spaceflight company within the Virgin Group. It was founded in 2004 and has its headquarters in Mojave, California. It is developing commercial spaceflights for space tourists and suborbital launches for the space science mission. It also plans to provide orbital human spaceflights. The founder Richard Branson and 3 astronauts took a flight to the edge of space and back. The plane used for the flight was SpaceShipTwo.
In 2007, February, Virgin announced that they have signed a memorandum of understanding with NASA to explore the potential for collaboration but they have only received a small contract in 2011 of up to $4.5 million for research flights and also, launched an investment into the OneWeb Satellite Constellation, which provides world internet access service of WorldVu.
4. Sierra Nevada Corporation
SNC Dream Chaser
This space tech company is a private American company which provides electronic systems providers and systems integrator specializing in microsatellites, telemedicine, and commercial orbital transportation services.
The company has contracts with the United States Armed Forces, NASA, and private spaceflights. It has 34 locations in 19 U.S states and rests in England, Germany, and Turkey. It was founded in 1963 by John Chisholm and was started as a small business with a few employees and later was acquired by Fatih and Eren Ozmen and became a multi-billion dollar company with thousands of employees. Its main business is the US Department of Defense and NASA contracts.
5. Airbus Defence and Space
A division of airbus, air defence, and space. It is responsible for defense and aerospace products and services. It has its headquarters in Ottoburnnin Germany. It was ranked as the 94th ranking at the Fortune Global 500 list in 2017 and was also named as one of the “World’s Most Admired Companies”.
It is structured into four business lines i.e. Military Aircraft, Space Systems, Communications, and UAS. The space systems are responsible for space exploration, space launch systems, missile defense, satellites, information solutions, strategic missiles, defence systems etc. as part of the services.
