Air India completes record deal for around 500 Airbus and Boeing aircrafts
Technology
Agreement highlights achievements of India's aviation industry and ties with France, PM Modi
(Reuters) - Tuesday saw the announcement of negotiations by Air India for a record 470 aircraft from Airbus and Boeing, hastening the regeneration of a national symbol under new owners Tata Group as Europe and the US praised the strengthening of their political and commercial relations with New Delhi.
The preliminary agreements, which break previous records for a single airline as Air India competes with local behemoth IndiGo to service what will soon be the world's biggest population, comprise 220 planes from Boeing (BA.N) and 250 from Airbus (AIR.PA).
"Historic," according to Vice President Joe Biden of the United States. Air India would employ the 210 A320neo narrowbody aircraft and the 40 A350 widebody aircraft from the Airbus deal to fly "ultra-long routes," according to Tata Chairman N Chandrasekaran.
Boeing will provide 190 737 MAX aircraft, 20 787 Dreamliners, and 10 777X superjumbo aircraft.
According to an Airbus official, the total procurement now includes 495 Airbus planes along with an additional 25 that will be leased to address urgent requirements.
Exclusively revealed by Reuters in December, Air India was on the verge of placing record-breaking aircraft orders of up to 500 planes.
The airline's resurrection under the Tata conglomerate hopes to take advantage of India's sizable diaspora throughout the world and rising base of travelers.
Campbell Wilson, the company's new CEO, is striving to restore its status as a premier airline and shed its reputation as a sluggish, disorganized enterprise with an outdated fleet and subpar service.
The political and economic significance of an agreement involving India's previous presidential candidate was emphasized by both French President Emmanuel Macron and Indian Prime Minister Narendra Modi.
This significant agreement highlights the achievements and goals of India's civil aviation industry, as well as the strengthening of ties between India and France, according to Modi.
During a video presentation, Macron stated, "This success indicates that Airbus and all its French partners are totally determined to developing new areas of cooperation with India."
With Macron promising France will collaborate with India in other industries, it is anticipated that the aviation agreement will have industrial spillovers.
According to Chandrasekaran, Airbus and Tata are collaborating on larger projects with the goal of "bringing in commercial aircraft manufacture at some point in the future."
According to industry sources, Airbus has so far rejected the notion on commercial and budgetary reasons despite repeated requests from India to construct a final assembly line in the nation to match a facility in northern China.
Additionally, it would put Air India in a better position to compete with IndiGo (INGL.NS), a domestic rival that holds a dominant market share in India and excels in regional routes.
