With 470 aircraft ordered from Boeing and Airbus, Air India is demonstrating the growing need for greater mobility in a country with a booming middle class. 220 Boeing aircraft worth $34 billion are on order by Air India. 20 Boeing 787s, 10 Boeing 777Xs, and 190 Boeing 737 Max aircraft are among the orders. Along with the 290 aircraft for a total of $45.9 billion at list price, the acquisition also includes customer options for a further 50 737 MAXs and 20 of its 787s. The transaction ranks second in terms of volume and is Boeing’s third-largest ever in terms of monetary value.
According to President Joe Biden, this purchase will sustain nearly 1 million American employment across 44 states, many of which will not need a 4-year college degree, and he is looking forward to furthering his relationship with Prime Minister Modi as they continue to address common global concerns to build a more prosperous and secure future for all of their inhabitants. The strength of the economic links between the India and the US is highlighted by this news.
India’s biggest-ever Aircraft purchase!
On February 14, 2023, Air India placed an order for 250 Airbus passenger planes. In a videoconference with French President Emmanuel Macron and Indian Prime Minister Narendra Modi, Tata Sons Chairman Natarajan Chandrasekaran announced that the airline is purchasing 210 additional narrow-body A320neo aircraft along with the 40 wide-body A350 Airbus aircraft. The deal’s financial details, which might be worth hundreds of millions of dollars, were not disclosed by Toulouse, France-based Airbus. In the video call, Guillaume Faury, CEO of Airbus, remarked, “Today is a historic moment for India, for Air India, and for Airbus.” Dimensions of the order “demonstrate the Indian aviation industry’s desire for expansion. It has the world’s quickest rate of growth.”
By enhancing its operations and updating its aircraft, Air India, the second-largest domestic and international airline in India, aims to redefine itself. The new aircraft will enable Tata to compete with IndiGo, the country’s leading airline. The A350s, according to Chandrasekaran, will “fly all ultra-long distances throughout the globe.” Short-haul routes mainly employ single-aisle A320 aircraft. To boost its order, the airline has “major alternatives,” according to him. Last year, the national carrier’s debt-ridden ownership was reclaimed by Tata Sons, the largest and oldest business in India. When the airline was introduced by the Tata Group in 1932, it was the beginning of commercial aviation in India. In 1953, the government took control of it.
Both Modi and Macron praised the agreement, hailing it as evidence of the growing “strategic relationship” between their nations. According to Modi, India would be the third-largest market in the world for the aviation industry. According to estimates, India will require more than 2,000 aircraft over the course of the next 15 years, and he claimed that “today’s historic announcement will help in satisfying this growing demand.”
Macron referred to the agreement as a “new success” in the France-India strategic alliance and an opportunity to “explore new areas of cooperation with India.” Tata is merging Air India into Vistara, a joint venture between it and Singapore Airlines, as well as Air Asia India, a joint venture between it and Malaysian discount airline Air Asia.
