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Air India’s biggest move – Signed the multi-billion-dollar deal!

FInoux 10 Mins 17 Feb 2023

In the largest aviation purchase in history, Air India orders 250 Airbus and 220 Boeing aircraft. To purchase 470 passenger planes, Air India, a subsidiary of the Tata Group, signed multibillion dollar contracts with both Airbus of France and Boeing of the United States. This action is expected to significantly enhance India's reputation on the international stage as an up-coming leader in the commercial aviation industry.

Air India has signed contracts for 250 Airbus aircraft and 220 Boeing aircraft, for a total estimated value of more than $85 billion. US President Joe Biden applauded Air India's decision to purchase more than 200 aero planes from Boeing on Tuesday, February 14, 2023, describing it as a "historic agreement between Tata-owned airlines – Air India and Boeing."

Biden further added that he feels ecstatic to let us know that more than 200 aero planes made in the United States will be purchased as a result of a historic agreement between Air India and Boeing. In 44 states, this acquisition will sustain over a million American jobs, many of which do not require a four-year college degree, said US President Joe Biden, in a statement issued by the White House.

The longstanding alliance between Air India and Boeing was a topic of conversation between Joe Biden and Prime Minister Narendra Modi. As an explicit example of mutually beneficial cooperation, all the parties praised the agreement. In order to create a more secure and prosperous future for all of their citizens, he continued to say that he is looking forward to extending their relationship even further with the Prime Minister Modi as they continue to face shared global issues.


According to estimates, Air India will be paying - Boeing USD 34 billion for up to 220 jets, with an option to acquire an additional 70 planes, bringing the total transaction value to USD 45.9 billion. Tata Group will buy 40 wide-body A350 aircraft and 210 narrow-body A350 aircraft, as per the agreement made with Airbus. Among the narrow-body aircraft, there are 70 A321neos and 140 A320s. The wide-body aircraft will be used for the exceedingly lengthy flights.

A narrow-body aircraft, commonly referred to as a single-aisle aircraft, is a considerably smaller aircraft that is frequently used for local and international short-haul travel. A narrow-body plane has a maximum passenger capacity of 300 but can fly as few as 4. On the other hand, a wide-body aircraft is a larger plane with a much greater capacity for passengers. Although they can occasionally be utilized on shorter trips, wide-body aircraft are nearly always used to perform long-haul and medium-haul flights.

Prime Minister Narendra Modi, Ratan Tata, French President Emmanuel Macron, and other world leaders took part in a virtual event to announce the agreement, and Airbus Chief Executive Guillaume Faury remarked it as a historic moment for Airbus to assist script Air India's comeback.

The agreement marks a new chapter in France and India's strategic alliance, said French President Emmanuel Macron, who also thanked Prime Minister Modi for his faith in France and their industry.

On January 27, 2022, Tata Group acquired 100% of Air India from the government for an anticipated price of Rs 18,000 crore. It is further anticipated that Air India will regain some of the market share it has lost to Gulf and western airlines over the years, as a result of the acquisition.

The only Indian airline to have ordered the Trent XWB-97, which is also the highest order ever for the engine that solely powers the Airbus A350-1000, is Air India, which also inked a memorandum of understanding for 68 of the engines.

Additionally, Air India placed a significant order for 12 Rolls-Royce Trent XWB-84 engines, the sole engine choice for the Airbus A350-900. Since then, Air India has lost market share in both the domestic and international markets as a result of its choice to not place a new order. Air India needs capacity, which the newly ordered aircraft would provide, in order to reclaim market share and expand its footprint within the nation and beyond.

A portion of the current fleet of Air India and Air India Express jets has to be replaced with more modern models that not only protect the environment but also use 15% less fuel overall. Industry observers anticipate that Air India will permit AIX Connect to continue using Boeing aircraft as the group's low-cost carrier. The 190 Boeing MAX aircraft will most likely be flown by AIX Connect and used mostly for the Indian domestic market.

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