A New Airbus Or Boeing Order?

Airbus and Boeing will lock horns as they vie for Oman Air, which is keen to expand its single-aisle fleet.

Reporting driven by Reuters suggests that the Gulf carrier has grown increasingly keen to transform its business and, with that, has placed greater emphasis than ever on growth.

To grow, more videos have been deemed neccesary across the business. The means by which the airline progresses with this remains to be seen, with all options left on the table.

The airline’s CEO, speaking on the sidelines of the Dubai Airshow, confirmed that work to plan for the addition of single-aisle aircraft will be guided by a five-year plan to be proposed to the board.

Strategic plans, such as a five-year plan, are not uncommon to release as airlines look to move forward with plans outlined to combat growing demand.

Growth for Oman Air would also represent a shift in its strategy, which has been primarily focused on the airline’s restructuring over the last 24 months. That restructuring has led to visible changes in the business in recent times, creating a more sustainable future.

The airline’s drive to be more sustainable aligns with targets to be profitable in the long term, with added baggage, so to speak, not dragging the company down during a period when it’s hopeful growth will be at the forefront.

Many global airlines have undergone similar restructuring over recent years, whether through route adjustments, flight cancellations, or staff reductions. These changes for each company are critical to stabilising businesses during the struggles of the COVID-19 pandemic.

The pace of turnaround iniaitives will differ, but for many of these global airlines, they feel relatively comfortable now to begin moving forward with fresh orders to meet demand across not just the remainder of the 2020s but well into the 2030s and beyond.

The Race For Airbus & Boeing Planes

However, for Airbus and Boeing, the race to purchase planes from these two companies is at its peak as airlines around the world continue to snap up delivery slots.

Manu Global Airlines finds itself in a fortunate position, able to purchase aircraft by the numbers. This is not minimal; this is with deals in the hundreds. What this means is that backlogs are strengthened tenfold.

Substantial backlogs are present throughout the industry, but are particularly pronounced across the single-aisle divisions of Airbus and Boeing, where the A320neo and 737 MAX families have large numbers of undelivered aircraft.

With this in mind, airlines seeking to add capacity across the short- to medium-term from these planemakers cannot source it directly from manufacturers, as there are no more available delivery slots.

The lack of delivery slots now stretches into the 2030s, with plane makers warning that airlines need to get in sooner rather than later to ensure they have the capacity they need come the turn of the decade.

Unfortunately, not every airline has the same backing and will not always be in a position to purchase new planes at a drop of a hat, or to invest tens of billions in planes that’ll be delivered in five to seven years.

These airlines can turn to the leasing market to boost capacity in their single-aisle operations; however, the market is already under pressure to meet customers’ requirements.

Following years of supply chain discomfort, compounded by backlogs and labour shortages, planemakers have struggled to deliver the aircraft needed not just to airlines but also to leasing markets. This is a problem yet to be fully solved, and airlines must take it into account.