Air India

According to officials who work for Air India, the airline is seriously looking at placing another larger order with Airbus or Boeing for 10-15 ultra large aircraft with the Airbus A 380 likely to win the order. AI has also decided that it is very keen on expanding its domestic and international cargo operations thus will be converting many of its owned Boeing 747-400s into freighters once new aircraft have fully replaced them. Boeing has proposed to Air India, a counter offer for a dozen Boeing 747-800s + a dozen more Boeing 777s as it feels that the carrier should focus more on frequencies of flights to certain destinations rather than increase capacity.

Analysis:

To make it more attractive, Boeing should offer AI a package which includes buying back their B 744s as part of AI's order for B 748Is and B 748Fs which will ultimately result in the B 744Fs being replaced by new B 748Fs. Also AI cannot fill up even 75% of an A 380 year round if they flew daily nonstop from BOM or DEL to any U.S. East Coast city or even LHR due to excess competition and low brand following of the airline. The only way, AI can make good use of the A 380's excess seating capacity, is by making a hub in the UK ( i.e. MAN-Manchester) for onward flights to USA as then the capacity of the A 380 can deployed effectively for 2 different market segments which see high density demand to/from India.

At the end of the day though, one reckons that Air India will order the A 380 for prestige reasons largely in order to stay competitive with EK and the EU carriers who will be using the A 380 to BOM & DEL in the future. However, to keep everyone "Uncle Sam" happy, a few B 777s or B 787s too will also be ordered.