MUMBAI- China Southern Airlines (CZ) has launched a strategic initiative to sell its entire fleet of 10 Boeing 787-8 Dreamliners, signaling a significant fleet restructuring move in the aviation industry.
The carrier has issued a comprehensive Request for Proposals (RFP) that includes the aircraft and two accompanying spare engines, with a clear mandate for a full-package sale.
China Southern Boeing 787-8 Sell
The offering centers on the airline’s first Boeing 787 delivery, registered as B-2725, which was initially received in May 2013. China Southern has structured the sale to be executed in a phased manner, with aircraft deliveries scheduled between 2025 and 2026.
Potential buyers face strict acquisition parameters. The airline will only consider proposals that encompass the entire fleet and engine package, effectively ruling out partial acquisition attempts.
Interested parties must submit preliminary expressions of interest by November 25, with China Southern committed to providing detailed technical specifications and comprehensive aircraft condition reports to qualified bidders by November 30.
The sale presents a unique opportunity for airlines looking to expand or modernize their long-haul fleet, with pre-owned Dreamliners that have a documented operational history with a major carrier.
Big Opportunity for Air India
Tata Group-owned only full-service carrier, Air India (AI) stands at a critical juncture with China Southern Airlines’ potential fleet divestment, presenting a strategic opportunity to accelerate network expansion and operational capabilities.
The sale of 10 Boeing 787-8 Dreamliners offers compelling advantages that align with Air India’s growth trajectory, flagged aviation analyst Ravreet Singh.
The aircraft’s average age of 11 years positions them as attractive acquisition targets, potentially available at significantly reduced prices. Critical operational synergies make these aircraft particularly appealing, with near-identical engine configurations and cabin layouts that would require minimal operational modifications.
Specifications reveal remarkably close cabin configurations: China Southern’s 18 business class and 248 economy seats compare closely to Air India’s existing 18 business and 238 economy seat arrangement. The GE engine commonality further simplifies potential integration, reducing technical adaptation complexities.
Compete With IndiGo
Recently, IndiGo has also focused on expanding not only inwards (domestic) but outwards (internationally). This poses a serious threat to Air India Group.
IndiGo aims for 25% growth with a goal to operate to over 40 international destinations by the end of FY25-26, up from the current 35 overseas destinations.
However, Air India Group has said that they are on track for recovery with Air India focusing on Metro and international routes, while Air India Express will cater to Tier 2 and Tier 3 cities.
To support its strategy, Air India needs big planes and they have huge ones on order. They take time to produce and due to supply chain issues and delays at the manufacturer level, Air India can really take up these planes.
Recently, Air India has been forced to cancel around 60 flights to the US during the peak winter holiday travel months. They could free up the 777s and A350s deployed on Europe routes with these 787s. They can also deploy them on high-demand existing medium to long-haul routes
Air India’s full-service division deploys 208 aircraft to serve over 90 destinations through 5,600 weekly flights.
If we talk about only a widebody fleet, the airline has a fleet of 67 of them:
- A350- 6
- Boeing 777- 27
- Boeing 787- 34
Acquiring these Dreamliners would enable Air India to rapidly expand its network reach, particularly from Mumbai (BOM) and Bengaluru (BLR) hub operations. However, comprehensive due diligence remains crucial, with significant considerations including potential high maintenance expenses and potential retrofit costs that could offset financial benefits, warns Mr Singh.
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