Modi, Macron, Biden announce: 470 Airbus, Boeing planes for Air India

The airline signed letters of intent with Airbus and Boeing, making it the largest-ever pipeline of new aircraft ordered by an Indian airline.

I thank my friend @EmmanuelMacron for joining me at the launch of an important partnership between @airindiain and @Airbus that will further strengthen the Indian aviation sector and create opportunities in both nations. This reflects the robust Indo-French Strategic Partnership.

— Narendra Modi (@narendramodi) February 14, 2023

Air India and Airbus announced the deal at a virtual event attended by Modi and Macron. Calling it a “landmark agreement”, Modi said it was an “important achievement” for the India-France strategic partnership.

Macron hailed it as a “new success” in the “aerospace sector” and said there is a “historic opportunity” to come together.

Later in the evening, Biden announced the Air India-Boeing agreement for “over 200 American-made aircraft”.

In a statement released by the White House, Biden said, “The United States can and will lead the world in manufacturing. I am proud to announce today the purchase of over 200 American-made aircraft through a historic agreement between Air India and Boeing. This purchase will support over one million American jobs across 44 states, and many will not require a four-year college degree. This announcement also reflects the strength of the U.S.-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 said.

The Prime Minister’s Office, in a statement, said Modi had a “warm and productive phone call” with Biden and they “expressed satisfaction at the deepening of the India-US Comprehensive Global Strategic Partnership, which has resulted in robust growth in all domains”.

“They welcomed the announcement of a landmark agreement between Air India and Boeing as a shining example of mutually beneficial cooperation that will help create new employment opportunities in both countries. The Prime Minister invited Boeing and other US companies to make use of the opportunities arising due to the expanding civil aviation sector in India,” the PMO stated.

Glad to speak with @POTUS @JoeBiden. Excellent discussion to review the ongoing and new initiatives to further deepen India-US Comprehensive and Global Partnership. We welcome the landmark @airindiain–@Boeing agreement which will help create new opportunities in both countries.

— Narendra Modi (@narendramodi) February 14, 2023

“The two leaders welcomed the first meeting of the initiative on Critical and Emerging Technologies (iCET) held recently in Washington DC, and expressed a keen desire to strengthen bilateral cooperation in space, semiconductors, supply chains, defence co-production and co-development and knowledge and innovation ecosystems,” it stated, adding that the two leaders agreed to remain in contact during India’s ongoing G20 Presidency to ensure its success.

The orders with Airbus and Boeing come at a time when India has been facing diplomatic pressure from the West over the ramp-up in its imports of Russian oil in the aftermath of the war in Ukraine. There’s also a push on either side of the Atlantic to push domestic manufacturing as part of a broader supply chain realignment after the Covid pandemic.

The two deals involve the purchase of 40 Airbus A350, 20 Boeing 787 and 10 Boeing 777-9 wide-body aircraft, along with 210 Airbus A320 and A321neo and 190 Boeing 737 MAX single-aisle planes. The first of these new planes will enter service in late 2023, and the bulk will arrive starting mid-2025.

The A350s will be powered by Rolls-Royce engines. The 777s and 787s will have engines from GE Aerospace, while all single-aisle aircraft will be powered by engines from CFM International.

“In addition to the 470 aircraft on firm order, Air India has secured a number of options and purchase rights. These give us the option, but not the obligation, to take additional aircraft at already-negotiated production slots and/or prices so that we can nimbly accommodate further growth and manage risk,” Air India CEO Campbell Wilson told employees in an internal post.

Wilson said that not only is the 470-plane order the largest ever placed by an Indian airline, it is among the “largest single aircraft orders by any airline, anywhere, ever”.

While Air India did not announce the value of both the orders, US-based news reports said that the list price of the Boeing order was $34 billion.

This is the first time in more than 17 years that Air India has placed an aircraft order. It is also the first order placed by the carrier under the ownership of the Tata Group.

The airline’s last order was for 111 planes – 68 from Boeing and 43 from Airbus – and that deal was worth $10.8 billion. The order was placed in 2005.

Since acquiring loss-making Air India from the government in January 2022, Tata Group has been taking various measures to revive the carrier.

At the Air India-Airbus virtual event, Modi said this deal is important for the deep ties between India and France and also reflects the achievements and aspirations of the civil aviation sector.

“Today, our civil aviation sector is an integral part of our development. Strengthening the civil aviation sector is an important part of India’s National Infrastructure Strategy,” he said.

He said the number of airports in India have increased from 74 to 147 in the last eight years.

“Our regional connectivity scheme has ensured air connectivity with remote parts of the country, which has led to economic and social development as well,” he said.
In the near future, he said, India’s aviation sector will be the world’s third largest market, and estimates suggest that more than 2,000 aircraft will be needed in the next 15 years.

“Today’s historic decision will meet the growing demand and India’s ‘Make in India – Make for the World’ vision will open up new opportunities for aerospace manufacturing,” he said.

He said the India-France partnership is important for stability of the international order and the multilateral system.

In London, British Prime Minister Rishi Sunak and Business and Trade Secretary Kemi Badenoch also welcomed the deal for Airbus and Rolls-Royce to provide new aircraft for Air India, which is worth billions of pounds to the UK.

A British High Commission statement said the agreement announced by the companies will support and create new highly skilled jobs in Wales and Derbyshire, helping to boost exports, grow the economy and level up the UK.

Prime Minister Sunak said, “This landmark deal between Air India, Airbus and Rolls-Royce demonstrates that the sky’s the limit for the UK’s thriving aerospace sector.”

Tata Sons Chairman N Chandrasekaran said, “It is just about a year since the government handed over Air India to the Tata Group. Air India is not yet another project. In a manner of speaking, it is a national project. A lot of emotions are involved in this project. There are huge expectations and 1 billion people want Air India to be very successful and (are) cheering across the country. And all the Indian diaspora globally are looking forward to Air India’s success. It has such a big history and heritage.”

“We on our part are going through a massive transformation, committed to building a world-class airline known for safety, on-time performance, the best of Indian hospitality, and modern fleet, and a wholesome experience for every passenger, whether they are in the front row, or the last row. That’s our commitment.”

“And we have been very busy since we took over. In order to do this, there are many ingredients that are required… one of the most important is a modern fleet, a fleet that is efficient, modern, and which can perform for all routes. And in doing so, we have built a very good relationship with Airbus,” he said.

“Today I am happy to say that we have filed a letter of intent to acquire 250 aircraft, 40 of them wide-body A350, which we will use on all ultra-long distance (flights) across the globe, and 210 narrow-body. And we also have the option to significantly increase the order as we grow,” he said.

He said they are already manufacturing or about to manufacture the C295 aircraft for defence and have relationships in technology services, engineering, and IT.

“We are working on bigger partnerships and one of our ambitions for the country is to bring in commercial aircraft manufacturing at some point in time in the future. We have teams aligned on both sides and we see this moment as a most significant moment for Tata Group’s Air India, Indian aviation, and for the manufacturing sector in India,” he said.

Airbus CEO Guillaume Faury said, “Today is a historic moment for India, Air India and Airbus. At Airbus, we are very proud and grateful that the Tata Group has chosen the A350 and the A320neo to script Air India’s revival. The magnitude of the Air India order… demonstrates the appetite for growth in the Indian aviation industry. It is the fastest-growing in the world.”

“The time is right for India to turn into an international hub and we believe the Airbus A350 will trigger a change in paradigm in long-haul travel that matches the aspiration of India and its people. The A350 will turn into the new flagship of India’s transcontinental service, whereas the A320neo will remain the undisputed flagship for domestic and regional service,” he said. – With PTI