LONDON (AP) – Air India unveiled orders on 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 USD34 billion. It marks the United States (US) 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 US, France and India.
The Boeing “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.
“This announcement also reflects the strength of the US-India economic partnership.”
Air India is seeking to reinvent itself by expanding its operations and modernising 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”.
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 USD45.9 billion at list price.
Airbus did not disclose financial terms of the deal, which could be worth tens of billions of dollars.
