In the largest shopping event in the history of commercial aviation, Tata Group’s Air India signed multi-billion dollar deals with French and American aircraft manufacturers Airbus and Boeing to purchase 470 passenger aircraft.
This action is expected to significantly enhance India’s reputation on the international stage as an up-and-coming leader in the commercial aviation industry.
In a deal estimated to be worth more than $85 billion, Air India has made contracts for 250 Airbus aircraft and 220 Boeing aircraft. On Tuesday, Air India’s decision to buy more than 200 aircraft from Boeing was praised by US President Joe Biden, who referred to it as a “historic agreement between Tata-owned airlines and Boeing.”
“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,” US President Joe Biden said in a statement issued by the White House.
Joe Biden and Prime Minister Narendra Modi discussed the historic partnership between Air India and Boeing. As a “shining example of mutually beneficial cooperation,” all parties praised the agreement. “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,” he added.
According to estimates, Air India will pay Boeing USD 34 billion for up to 220 aircraft, with an option to acquire an additional 70 aircraft, bringing the total transaction value to USD 45.9 billion.
According to the agreement reached with Airbus, Tata Group will purchase 210 narrow-body aircraft and 40 wide-body A350 aircraft. There are 140 A320 aircraft and 70 A321neo aircraft among the narrow-body aircraft. The extremely long trips will be made on wide-body aircraft.
“It is a historic moment for Airbus to help script Air India’s revival,” Airbus chief executive Guillaume Faury said in a virtual event. French President Emmanuel Macron said the agreement “marks a new stage in India and France’s strategic partnership” while thanking Prime Minister Modi “for your confidence in France and our industry.”
On January 27, 2022, Tata Group acquired 100% of Air India from the government for an anticipated price of Rs 18,000 crore. It is anticipated that Air India will regain some of the market shares it has lost to Gulf and western airlines over the years as a result of the acquisition.
Also Read: Indian Players Take Injections To Improve Fitness: Chetan Sharma Sparks Controversy
