Air India is considering postponing some aircraft orders to stem its losses. That hesitation has opened a window for Gulf rivals like Etihad and Saudia. The Gulf carriers are actively approaching Boeing and Airbus to secure potential earlier delivery slots.
Etihad Airways, based in Abu Dhabi, is in talks to secure earlier delivery positions. Saudia, Saudi Arabia's national airline, is also negotiating for earlier deliveries of Boeing and Airbus jets.
Tata Group, the majority owner of Air India, is pushing the carrier to cut its record financial losses. That pressure is forcing Air India to reconsider its network expansion and aircraft orders. The carrier had previously acquired more than 50 Boeing 737 Max jets from a batch built for Chinese airlines.
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It also took over some Airbus A350 widebody jets originally earmarked for Russia's Aeroflot.
An Air India spokesperson stated, "We have not deferred any orders." However, the company did not respond to a follow-up question about whether talks with Gulf carriers are happening. The discussions between the Gulf airlines and planemakers remain preliminary. No final agreements have been reached.
Demand for early delivery positions has surged as manufacturers' backlogs for top-selling aircraft models extend far into the 2030s, prompting airlines eager to upgrade and grow to compete fiercely for available slots. The carrier's aggressive order book was placed during a period of ambitious growth, but current financial pressures may force a more cautious approach.
Given the long lead times for new jets, swapping or trading delivery slots has become a common industry practice. Airlines often renegotiate positions when their own strategies shift, allowing others to step in and accelerate their fleet plans. For Gulf carriers flush with cash and expansion goals, these openings represent a rare opportunity to bypass years of waiting.
The potential slot transfers highlight the shifting power in Middle East aviation, with well-funded Gulf carriers capitalizing on the financial struggles of legacy carriers. Air India's order book, swollen with planes aimed at rapid growth, now faces scrutiny from Tata Group, which is prioritizing profitability over expansion. This dynamic creates a window for rivals like Etihad and Saudia to leapfrog years-long waitlists.
Etihad CEO Antonoaldo Neves previously said the carrier secured earlier delivery positions as other airlines postponed or canceled commitments. That pattern may repeat if Air India pulls back. For now, investors should watch whether the Gulf carriers can turn these talks into firm contracts. The deal is not done yet.
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