#AirIndia's order for 220 #Boeing planes will be providing 1 million jobs to US nationals. The order for 220 planes from Air India is worth $34 billion. Air India also announced a deal to buy 250 planes from Europe's #Airbus.
US President Joe Biden on Tuesday termed Air India's $34 billion order for 220 Boeing planes as a "historic" deal that will support his agenda with one million US jobs.
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.
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.
Air India, which is now back with its original owner Tata Group after last year's privatisation, also announced a deal to buy 250 planes from Europe's Airbus - 210 A320neo narrowbody planes and 40 A350 widebody aircraft.
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.
Air India will also be buying 250 jets from Airbus. The deal includes 210 narrowbody aircraft & 40 widebody planes. In 1932, JRD Tata, chairman of India's largest multinational conglomerate, Tata Group, founded Air India.
In 1953 the government took over and nationalized the airline. In later decades, the carrier became a white elephant and was seen as symbolizing everything that was wrong in the Indian economy with government interference even in the day-to-day operations of companies.
The last ill-fated decision was the merger of Air India with domestic sibling Indian Airlines in 2007 — a combination then boasting twice the number of employees per aircraft versus the global average.
India is one of the world's fastest-growing aviation markets mainly fueled by a growing middle class that can afford to fly. The domestic market is bouncing back quickly after the pandemic, counting 123 million domestic passengers in 2022 — a 47% increase versus 2021. That's where Air India's huge narrow-body aircraft orders from Airbus and Boeing will mostly play out and help regain market share.
At the moment, Air India has just 114 aircraft in its fleet, many of which had been deactivated due to a lack of funds for spare parts, and were only recently swiftly reactivated. 70 aircraft are Airbus narrow-bodies and 44 Boeing 777 and 787 long-haul jets. Tata SIA Airlines, operating as Vistara, owns three 787s as the only other Indian airline capable of intercontinental flying.
No wonder the country's airlines have lost huge market share to big Gulf carriers such as Emirates — just 39% of international traffic to and from India was operated by airlines from the country recently, and this even comprises regional routes within Asia and the Gulf.
As an interim measure for short-term growth, Air India is adding a total of 42 extra aircraft in the first half of this year, with 31 of them being A320 mainstay jets and the remaining being wide bodies.
“This is a historic moment for Airbus and for Air India. India is on the verge of an international air travel revolution and we are honoured that our partnership with the Tatas and our aircraft solutions will write that new chapter for the country’s air-connectivity,” says Christian Scherer, Airbus Chief Commercial Officer and Head of International. “The A350’s unique capability will unlock the pent-up potential of India’s long-haul market, its technology, long reach and second to none comfort will enable new routes and passenger experience with better economics and enhanced sustainability. Alongside the A350s, the A320 Family fleets will be the efficient, versatile asset to continue democratising and decarbonising air travel in the country – from domestic, regional, up to international levels.”
The Air India-Airbus deal for 250 aircraft was welcomed on Tuesday by UK Prime Minister Rishi Sunak, who said the contract will create new highly skilled jobs in Britain and help boost exports.
A statement from the British high commission said the deal is worth billions of pounds to the UK as a “significant portion of the manufacturing process for the new aircraft is expected to take place in the UK”.
The wings will be designed in Filton and assembled in Broughton, and this is expected to bring 450 manufacturing jobs and more than £100 million in investments to Wales, the statement said. The A350 aircraft are powered by Rolls-Royce XWB engines, which are assembled and tested in Derby.
Sunak said the “landmark deal” will create “better-paid jobs and new opportunities in manufacturing hubs from Derby to Wales” so that the UK “can grow the economy and support our agenda to level up”.
The deals were placed with support from the highest political levels. Indian prime minister Narendra Modi and French president Emmanuel Macron joined Tata family member Ratan Tata, Tata’s chair, Natarajan Chandrasekaran and Airbus chief executive Guillaume Faury in a video announcement. The US president, Joe Biden hailed the Boeing order..
Tata Group is spending an estimated $60 billion on 470 planes from Airbus and Boeing to expand the carrier’s global presence and compete with Emirates.
Boeing already has a Manufacturing Plant in Bengaluru which Exports Aircraft Components & Software Services worth ₹8000 Crores Annually.
Airbus is setting up Manufacturing Plant in J/V with Tata in Vadodara, Gujarat which will start production of Military Aircrafts.Lockheed Martin which makes C-class transporters and F-class fighters announced to open Heavy Maintenance Center in Bharat. Will be 1st of its Kind in Asia & 3rd in World after US & Canada. All C-130J aircraft from around World to be serviced, maintened & repaired here.Tata also has J/V with Boeing with Manufacturing Plant at Hyderabad. It produces various Components & Avionics for Boeing Aircrafts all over World. It also produces Fuselage of World's Best Attack“Apache"Helicopters & has already delivered >100 Apache Fuselages by July 21Bharat-Russia talks were in a Limbo over production of Sukhoi Superjets under “Atmanirbhar Bharat" for last few months. Hearing that, after Yesterday's deal, Russia's United Aircraft Corporation is also inclining to accept Bharat's terms.