Air India on Tuesday sealed a deal with American aircraft-maker Boeing for 290 planes as it looks to massively expand its fleet under the new management. The deal was made official just a few hours after PM Narendra Modi announced the Indian airline’s agreement with French aircraft-maker Airbus.
Air India has signed the Letters of Intent to acquire the fleet of aircraft and the order comprises 40 Airbus A350s, 20 Boeing 787s and 10 Boeing 777-9s wide-body aircraft, as well as 210 Airbus A320/321 Neos and 190 Boeing 737 MAX single-aisle aircraft.
Boeing said that Air India has selected 190 737 MAXs, 20 787 Dreamliner and 10 777X airplanes. The agreement between Boeing & Air India includes options for 50 additional 737 MAXs and 20 787-9s aircraft.
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US President Joe Biden called the deal with Boeing a “historic agreement”. “The United States can and will lead the world in manufacturing. I am proud to announce today the purchase of over 200 American-made aircraft through a historic agreement between Air India and Boeing. This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree,” he said.
The Air India-Boeing deal is part of a mega deal for about 500 new planes that the company is acquiring to revamp itself. The 500 aircraft will cost Talace Private Limited, a special-purpose vehicle of Tata Sons that owns Air India, more than $100 billion, reported news agency Reuters.
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Air India’s move to reinvent itself with the largest-ever aviation deal in the world has been hailed by UK prime Minister Rishi Sunak as well. He said that Britain stood to benefit from the deal, too, as it would create jobs and boost exports since Airbus designs and manufactures components there.
Air India’s deal will create nearly 450 jobs and bring $122 million worth of investment to Wales, where Airbus manufactures the wings for its aircraft. Air India’s mega aircraft acquisition deal with Airbus includes 40 wide-body A350 aircraft that will be run on British car and aero-engine-maker Rolls Royce.
Earlier on Tuesday, Prime Minister Narendra Modi and French President Emmanuel Macron launched the Air India-Airbus partnership via video conference. In the next 15 years, over 2,000 aircraft would be required in India, PM Modi said.