Air India buys 470 airplanes in world’s biggest ever aviation deal

Tata Group's Air India has inked multibillion-dollar contracts with France's Airbus and US planemaker Boeing to buy 470 passenger jets in the biggest buyout in commercial aviation history - a move that is expected to significantly boost India's image on the global platform. an emerging leader in the commercial aviation sector. Air India has placed orders for 250 Airbus planes and 220 Boeing planes in a deal expected to be worth more than $85 billion.

US President Joe Biden on Tuesday welcomed Air India's decision to buy more than 200 aircraft from Boeing, calling it a "historic deal between Tata and Boeing-owned airlines". "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," US President Joe Biden said in a statement issued by the White House. 

Prime Minister Narendra Modi and Joe Biden discussed the landmark deal between Air India and Boeing. Both hailed the agreement as "a shining example of mutually beneficial cooperation". "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 added.

According to reports, Air India will buy up to 220 aircraft from Boeing for $34 billion, with an option to buy an additional 70 aircraft, which could bring the total value of the deal up to $45.9 billion. Under the deal with Airbus, the Tata Group will buy 40 A350 wide-body aircraft and 210 narrow-body aircraft. The narrow-body aircraft include 140 A320 aircraft and 70 A321neo aircraft. The wide-body aircraft will be used for ultra-long flights.

"It is a historic moment for Airbus to help script Air India's revival," Airbus chief executive Guillaume Faury said in a virtual event held to announce the partnership that was attended by Prime Minister Narendra Modi, Ratan Tata, French President Emmanuel Macron and other leaders. French President Emmanuel Macron said the agreement "marks a new stage in India and France's strategic partnership" while thanking Prime Minister Modi "for your confidence in France and our industry."