“Air India has signed one of its biggest ever aircraft deals with Airbus to acquire 250 planes,” said Tata Sons Chairman, Natarajan Chandrasekaran.
During a virtual event attended by Indian Prime Minister Narendra Modi, as well as French President Emmanuel Macron and others, Tata Sons chief, Chandrasekaran, announced that Air India has signed a letter of intent with Airbus for the purchase of planes. Chandrasekaran stated that the airline is committed to building a world-class airline, which includes acquiring a modern, efficient fleet that can perform on all routes. As part of the deal, the airline will acquire 40 widebody A350 aircraft and 210 narrow-body planes, with options to increase the fleet order. The acquisition of these planes is a significant move for Air India, as it aims to modernize its fleet and expand its services. The deal also underscores Airbus’s growing presence in the Indian aviation market.
Strengthening connections between France and India
Indian Prime Minister Narendra Modi congratulated the Tata Group and Airbus on the successful agreement and said that the deal reflects the deepening ties between India and France, as well as the successes and aspirations of India’s civil aviation sector. The Prime Minister highlighted that the number of airports in India has grown from 74 to 147 over the past eight years, and the UDAN scheme is connecting remote parts of the country through air connectivity, boosting economic and social development.
Modi further emphasized that India’s aviation sector is on a growth trajectory, and in the near future, India is expected to become the world’s third-largest market in the aviation sector. This deal is expected to provide a significant boost to Air India’s efforts to modernize its fleet and improve its services, which will further contribute to the growth of India’s aviation industry.
On ties between India and France, PM Modi said, “Whether it is the issue of security and stability in the Indo-Pacific region or global food security and health security, India and France together are making a positive contribution.”
French President Emmanuel Macron expressed his satisfaction with the Air India-Airbus agreement, stating that France is deeply committed to providing the best technology available to India. Macron further highlighted that this agreement is a reflection of Airbus and its partners’ interest in doing more business in India, which will further strengthen the partnership between India and France.
The agreement with Airbus is expected to help Air India in its efforts to modernize its fleet and enhance its services, which will contribute to the growth of India’s aviation sector. The commitment of France and Airbus to doing more business in India is likely to open up new opportunities for cooperation between the two countries in aviation and other sectors.
This is the first aircraft order Air India has made in more than 17 years, according to a PTI report. Additionally, it is the first order placed by the carrier while under Tata Group control.
Proceed to purchase 220 Boeing aircraft
Air India has announced its intention to purchase 220 planes from Boeing, with the option to acquire a further 70 Boeing aircraft, in a deal that could see the Indian airline take delivery of up to 290 jets. The announcement was made by the White House on February 14, just hours after Air India had signed a deal for 250 planes with Airbus in a virtual ceremony attended by Prime Minister Narendra Modi and French President Emmanuel Macron, among others.
The deal between Air India and Boeing was praised by US President Joe Biden, who called it a “historic agreement” that will generate over 1 million American jobs across 44 US states. The $34 billion agreement includes 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs, with the option to buy an additional 50 and 20 Boeing 737 MAXs and 20 Boeing 787s. This might raise the deal’s overall worth to $45.9 billion. The deal between Air India and Boeing, according to the US President, shows how strong the US-India economic relationship is.
“Together with Prime Minister Modi, I look forward to deepening our partnership even further as we continue to confront shared global challenges, creating a more secure and prosperous future for all of our citizens,” Biden said in a statement.
The purchase of 220 Boeing planes represents a significant boost to Air India’s fleet and underscores the airline’s commitment to modernising its aircraft and expanding its services. As the aviation industry continues to adapt to a changing landscape, the deal is also an important milestone for Boeing, which has faced challenges in recent years.
According to the White House, the agreement between Air India and Boeing is expected to have a significant economic impact in the United States, with an estimated $70 billion in total economic impact during production and delivery. This deal is expected to support approximately 1.47 million direct and indirect jobs across the country.
Boeing’s production of the 190 Boeing 737 MAXs, 20 Boeing 787s, and 10 Boeing 777Xs will be supported by three separate US-based manufacturing lines, which include aerospace suppliers across 44 different states. This level of collaboration and investment is expected to have a ripple effect throughout the US economy, providing a boost to local businesses and communities, particularly in the aerospace industry.
The Air India-Boeing agreement is not only a significant win for the companies involved but also for the US economy, which will benefit from the job creation and economic growth that will come from this historic agreement.
On January 27, when the Tata Group marked the first anniversary of taking over Air India, the airline announced that it was in the process of finalizing a historic order of new aircraft to drive its future growth.
