June 4: The Indian market is witnessing a surge in global aircraft rivalry on its turf. The rivalry between American plane manufacturer Boeing and France-based Airbus is now spreading its wings to India, thanks to a series of developments taking place around the aircraft manufacturing space.
Boeing has been aggressively taking on Airbus in the global space with lowered costs backed by President Donald Trump’s tax cuts. Additionally, the company is also eyeing to exploit the transition phase of Airbus, which has been taken over by Eric Schulz from veteran John Leahy in February this year. The aggressive pricing of Boeing along with its expansion of the competition to key markets is piling up the pressure over the rival manufacturer.
The same is the case in India, which is seen as a key Asian market by both the manufacturers. Boeing had just given a blow to Airbus in the market by grabbing order for six 787 Dreamline aircraft from Vistara, which snubbed the model from Airbus in the process. The deal, according to people close to the matter, will also cover the option for purchase of four additional 787 from Boeing, taking the total cost involved in the deal to around $3.3billion.
For Airbus, this would be a huge setback given the pace at which Boeing is replacing the France-based manufacturers in the global space. Recently, Hawaiian Air had revealed that it would be cancelling the contract for Airbus model, replacing it with the ones from Boeing. This was followed by the move of American Airlines who made the jump to Boeing Dreamliners in a $12.3 billion deal.
Boeing’s competition is also something that has been openly acknowledged by Airbus. Eric Schulz said in a recent interview that the Boeing was giving a hard time to Airbus. Airbus CEO Tom Enders had said earlier that Boeing sales team was most aggressive in 20 years.
The expansion of the same aggressive plans to India would be a major setback, given the prominence of the market in the Asian region. The Vistara move could only be a beginning for what could be seen as a more aggressive move from the American manufacturer in occupying a better hold in the market.