Washington: The landmark Air India-Boeing deal will create up to 1 million jobs across 44 states in the US and will further deepen bilateral ties, President Joe Biden has told Prime Minister Narendra Modi.
The Boeing “purchase will support over 1 million American jobs across 44 states, and many will not require a four-year college degree,” U.S. President Joe Biden said. “This announcement also reflects the strength of the U.S.-India economic partnership.”
Air India is seeking to reinvent itself by expanding its operations and modernizing its fleet. The new jets will help the airline’s owner, Tata Sons, compete against upstart discount rivals including India’s dominant carrier, IndiGo.
“India is going to be the world’s third-largest market in the aviation sector,” Indian Prime Minister Narendra Modi said in a videoconference. Over the next 15 years, it’s estimated that India will need more than 2,000 aircraft, and “today’s historic announcement will help in meeting this growing demand.”
While discussing the landmark deal with Modi, Biden says he is looking forward to deepening the ties between India and the US.
“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,” Biden said in a statement.
Air India unveiled orders Tuesday for 470 Boeing and Airbus passenger jets as it races to tap surging demand for increasingly affordable air travel from the nation’s growing ranks of middle-class consumers.
India’s largest international airline and second-largest domestic carrier is buying 220 Boeing aircraft valued at $34 billion. It marks the U.S. plane maker’s third-largest sale of all time, in dollar value, and its second of all time in quantity.
Air India is also buying 250 passenger jets from European plane manufacturer Airbus, with the orders championed by the leaders of the U.S., France and India.
The Boeing order includes 190 737 Max aircraft, 20 of its 787s, and 10 of its 777Xs. The purchase includes customer options for an additional 50 737 MAXs and 20 of its 787s, which would make it 290 airplanes for a total of $45.9 billion at list price.
Toulouse, France-based Airbus will provide Air India 40 wide-body A350 Airbus aircraft and another 210 narrow-body A320neo planes, Tata Sons Chairman Natarajan Chandrasekaran said in the call with Modi and French President Emmanuel Macron.