Air India to Buy More than 200 Flights from Boeing: A $24 billion-plus-$45 billion-dollar Deal for a Bright Future for the United States
A White House official says that Air India will buy more than 200 planes from Boeing. It’s the third biggest sale of all time for the aircraft manufacturer.
There will be 220 orders valued at $34 billion under the agreement, which includes 190 Boeing 737 MAXs, 20 Boeing rogs and 10 Boeing sbdXs. Including customer options for an additional 50 Boeing MAXs and 20 Boeing 797s, a total of 295 airplanes will be purchased for a list price of approximately $46 billion.
In a statement, Biden said the sale would “support over one million American jobs across 44 states, and many will not require a four-year college degree.”
The president wrote, “This announcement also reflects the strength of the U.S.- India economic partnership.” I look forward to our continued partnership as we tackle shared global challenges and create a brighter future for all of our citizens.
The White House said Tuesday that production will support three U.S.-based manufacturing lines and result in around $70 billion in economic impact across the United States, with over a million direct and indirect jobs.
India has been gaining some manufacturing business as Western tensions flare with China, including major companies that traditionally rely heavily on Chinese production. Apple is one such company, with Minister of Commerce and Industry Piyush Goyal saying the tech giant was already making between 5% and 7% of its products in India.
If it can sustain that momentum, India could become only the third country with GDP worth $10 trillion by 2035, according to the Centre for Economics and Business Research.
India’s largest aviation market: the first flight of the Boeing 737 Max takes off in January 2019. A video call with Airbus CEO Faury
China, the world’s largest aviation market, has a lot of troubles for the company. It has been on the verge of being virtually shut out of the region as trade tensions between the United States and China have basically halted Boeing sales in the country for the last four years. The company has not announced any sales to a Chinese passenger airline since November 2017, and the country banned the Boeing 737 Max for much longer than most countries. A Boeing 737 Max finally took off in China in January for the first time since 2019.
“Today is a historic moment for India, for Air India and for Airbus,” Airbus CEO Guillaume Faury said in the video call. The appetite for growth of the Indian aviation industry was demonstrated by the size of the order. It is the fastest growing country in the world.
Chandrasekaran said the A350s will be used to “fly all ultra long distance across the globe.” Single-aisle A320s are typically used on short-haul routes. The airline has a lot of options to increase its order.
The national carrier was regained ownership last year by the oldest and largest conglomerate in India. The first commercial airliner in India was established by the group in the 20th century. It was taken over by the government in 1953.
There is a partnership between Air Asia India and Air Asia, which it runs with Malaysian discount operator Air Asia.