In a transaction that would cost around $85 billion, Air India placed orders for 220 Boeing planes and 250 Airbus aircraft
Air India by Tata Group signed a multi-billion-dollar deal with Airbus and Boeing to buy 470 passenger aircraft in the largest aviation deal ever. This move is expected to improve India’s image on the global platform and potentially lead to its emergence as a leader in the aviation sector. In a transaction that would cost around $85 billion, Air India placed orders for 220 Boeing planes and 250 Airbus aircraft.
AI is committed towards its transformation journey. As a part of the same, we are celebrating the order of 470 aircraft with @Airbus @BoeingAirplanes @RollsRoyce @GE_Aerospace @CFM_engines pic.twitter.com/NvkeZqZ0xt
— Air India (@airindiain) February 14, 2023
US President Joe Biden and Indian Prime Minister Narendra Modi hailed the deal as an important example of mutually beneficial cooperation. Joe Biden called the deal a “historic agreement between Tata-owned airlines and Boeing” According to the deal, Tata Group will purchase 210 narrow-body aircraft and 40-wide body A350 planes. Airbus chief executive Guillaume Faury states “It is a historic moment for Airbus to help script Air India’s revival,” in a meeting to announce the partnership that was attended by Narendra Modi, French President Emmanuel Macron, Ratan Tata, and other leaders. The narrow-body aircraft include 140 A320 planes and 70 A321neo ones. The wide-body aircraft will be used for ultra-long flights.
“I am proud to announce today the purchase of over 200 American-made aircraft through a historic agreement between Air India and Boeing,” said US President Joe Biden in a statement announced by the White House. He also stated that the purchase would support more than one million American jobs across 44 states, and many will not require a four-year college degree.
The UK is happy too!
Air India – Airbus deal will make India and America happy but there’s another country in the distance that rejoices about the deal. The British government is evidently pleased with the deal as it would bring the country billions of pounds as a substantial part of the manufacturing process is set to take place in the UK. Rishi Sunak welcomed the momentous deal as it would support and help create job opportunities for many in Derbyshire and Wales. The wings and engines required for the aircraft are set to be manufactured in the UK and this would create significant investment opportunities for the country.
The wings will be constructed in Filton and gathered in Broughton and are expected to bring an additional 450 manufacturing jobs and more than £100m of investment to Wales. “The large A350 aircraft is exclusively powered by Rolls-Royce XWB engines, which are assembled and tested in Derby”, states the official statement by the British government. Sunak mentioned that the historic deal will create better employment and opportunities in industrial hubs from Derby to Wales. He also stated that this would also aid in the growth of the economy by supporting the government’s plans of delivering the five priorities for the country.
UK Aerospace Sector
UK’s aerospace sector added £10.6bn to the country’s economy, directly employed more than 10,000 people, and exported 70% of its domestic output. The country’s aerospace industry is esteemed for its apprenticeships and employs more than 5,000 people.
The UK is currently discussing a free trade agreement that would increase the £34 billion trading relationship with India. India is a major economic power and is projected to become the world’s third-largest economy with middle-class consumers reaching a quarter of a billion by the year 2050. “We’re currently negotiating a trade deal with India which could boost trade by up to £28 billion a year by 2035. Export wins like this are another big step to our nation’s forming a closer trading relationship,” stated Trade Secretary Kemi Badenoch MP. He also stated that the deal would create thousands of highly skilled job opportunities across the country and drive the economy.