Air India creates history with mega order for 470 Airbus, Boeing jets

New Delhi. Air India, which reverted to its original owner, the Tata’s, created aviation history on Feb 14 with a mega order for 470 Airbus and Boeing jets with Prime Minister Narendra Modi, French President Emmanuel Macron, and US President Joe Biden hailing the deals as major steps in deepening India’s strategic partnership with the two countries.

In the mix are 250 Airbus aircraft, including 40 A350 wide-body aircraft for long distance routes, and 210 A320 narrow body aircraft for domestic and regional flights. The size of the deal was not revealed.

The deal with Boeing is for 220 aircraft, a combination of 737 MAXs, 787s, and 777Xs, worth $34 billion, with an option for 70 more planes worth almost $12 billion.

Modi and Macron participated in a video call during which Tata Group chairperson N Chandrasekaran and Airbus CEO Guillaume Faury unveiled the deal with the European manufacturer.

Modi and Biden also spoke on phone, welcoming the “landmark agreement” with Boeing as a “shining example of mutually beneficial cooperation” that will help create jobs in India and the US.

Modi congratulated Air India and Airbus for entering into their agreement.

“I congratulate Air India and Airbus for this landmark agreement. The deal is a testament to the deepening relationship between India and France as well as the successes and ambitions of India’s civil aviation industry,” Modi said.

Interacting with French President Emmanuel Macron virtually during the signing of the agreement, the Prime Minister said that the agreement between Air India and Airbus is also an important milestone for the Indo-French Strategic Partnership.

“Today, the India-France partnership is playing a direct role in ensuring the stability and balance in the international order and the multilateral system. 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 positive contributions,” said Modi.

Recalling the foundation stone laying ceremony of the Defence Transport Aircraft Project in Vadodara in October last year, he said that Tata and Airbus also have a partnership in this project which is being built with an investment of 2.5 billion euros.

“I am also happy to know that French company Safran is setting up the largest MRO facility in India to service aircraft engines,” he added.

Commerce Minister Piyush Goyal, Civil Aviation Minister Jyotiraditya Scindia, Tata Trusts Chairman Ratan Tata, Tata Sons Chairman N Chandrashekharan, Air India CEO Campbell Wilson, and Airbus CEO Guillaume Faury were also present on the occasion.

Biden termed Air India’s order for Boeing planes as a “historic” deal that will support his agenda with one million US jobs and promote its lead in technology.

He linked the orders to his domestic plans to create good jobs for the working class, noting that many of the one million jobs “will not require a four-year college degree” and will be spread across 44 states.

Biden has been pushing for creating better-paying industrial jobs for the working class beaten down by such works going overseas, mainly to China, as well as boosting manufacturing in the US.

Biden said that Air India’s Boeing purchase shows that “the United States can and will lead the world in manufacturing”.

The reference to jobs in the US, which a White House official said will, directly and indirectly, amount to 1.47 million, can also offset criticism in the US of tech jobs going to India by showing that US workers also benefit.

The Air India order will have a total economic impact of $70 billion, the official said.

The Air India order is Boeing’s third-biggest sale of all time in dollar value and second in quantity, according to the official.

The “historic” Boeing deal, Biden said, “Reflects the strength of the US-India economic partnership.”

“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.

The White House official linked the announcement to the inaugural launch of the US-India initiative on Critical and Emerging Technology (iCET) launched last month.

The initiative seeks to expand the strategic technology partnership and defence industrial cooperation between the two governments, businesses, and universities.