Surging demand for affordable air travel from the nation’s growing ranks of middle-class consumers has forced Air India to buy a total of 470 Boeing and Airbus passenger jets to help compete with rival discount IndiGo.
India is going to be the third-largest aviation market in the world according to PM Modi and up to 2000 passenger planes will be needed in the next 15 years to meet the growing market.
After almost losing the entire Chinese market, the Air India order gives Boeing hope with the order of 190 737 Max aircraft, 20 of its 787s, and 10 of its 777Xs with custom options for an additional 50 737 MAXs, and 20 of its 787s, which would make it 290 airplanes for a total of $45.9bn at the list price.
While France-based Airbus will provide Air India with 40 wide-body A350 Airbus aircraft and another 210 narrow-body A320 neo planes according to Chandrasekaran.
A happy US President Joe Biden called the agreement between Air India and Boeing “historic” and discussed it by telephone with Indian PM Narendra Modi while President Macron applauded the Airbus deal, calling it a success and an opportunity to develop new areas of cooperation with India and a sign of the strengthening “strategic partnership” between their countries.
Air India is owned by Tata sons, India’s oldest and largest conglomerate which took over the national carrier last year.
Air India Unveils Historic Orders For 470 Boeing And Airbus Jets
I'm a senior member at Forsige covering topics on diplomacy and foreign policy relating to Asia and the World.